{"id":22,"date":"2022-12-05T09:09:19","date_gmt":"2022-12-05T09:09:19","guid":{"rendered":"http:\/\/omnirichfinancials.com\/blog\/?p=22"},"modified":"2023-01-09T12:10:51","modified_gmt":"2023-01-09T12:10:51","slug":"month-end-closing-checklist-for-better-accounting","status":"publish","type":"post","link":"http:\/\/omnirichfinancials.com\/blog\/2022\/12\/05\/month-end-closing-checklist-for-better-accounting\/","title":{"rendered":"Month-End Closing Checklist for Better Accounting"},"content":{"rendered":"\n

Whether you\u2019re a small business owner, a CPA, or part of a dedicated corporate accounting team, the success of your business relies heavily upon certain standardized procedures and the data they generate. This is particularly true for the accounts department, where the\u00a0month-end closing process\u00a0must be done properly to ensure the accuracy and completeness of your financial statements and balance sheet. It\u2019s neither glamorous nor particularly enjoyable for many, but month-end close\u00a0is\u00a0essential to the health and happiness of not just your accounting department, but your entire organization.
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Traditionally, month-end closing has been regarded as a time-consuming and occasionally frustrating process\u2014a sort of \u201cnecessary evil\u201d in bookkeeping. But by taking the time to understand its particulars, implementing a clear and concise checklist, and investing in the right resources, you can ensure your month-end close is quick and (nearly) painless, without sacrificing accuracy or completeness.
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The month-end closing process<\/strong>

It is crucial to have a month-end closing process checklist since you need to aggregate data from multiple places to create and review the financial statements. Here are some records that you need to double-check:

1. Cash:<\/strong>\u00a0Ensure that your cash balance matches the bank statements, and check if there are any discrepancies or undeposited funds.

2. Reconcile accounts<\/strong>: Reconcile every transaction with your bank account statements.
Break your account into the following categories:\u00a0
\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Cash, cheques, and saving accounts
\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Prepaid or accrued account
\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Bank loans and notes

Pick one option first. Start working on it carefully. Make strides for others afterward. This way, your business accounting will stay streamlined and you\u2019ll be able to catch errors at month-end closing with ease.\u00a0

3. Check revenue and expense accounts:<\/strong>\u00a0Review your revenue and expense accounts. Make certain you recorded them in the correct account for a specific period. Be sure accruals and prepaid expenses are recorded in your books in the right manner.\u00a0

4. Accounts receivable<\/strong>:\u00a0Check the status of due payments and whether you have to write off any bad debt.

5. Accounts payable:<\/strong>\u00a0Cross-confirm the payments that you made to suppliers during the month.

6. Inventory and fixed assets<\/strong>:\u00a0Document the depreciation value of fixed assets and track your inventory.

7. Accrued taxes:<\/strong>\u00a0Check for the accumulated tax for the period concerned.

8. Payroll<\/strong>:\u00a0Calculate employee payroll for reimbursement.

9. Review your work<\/strong>: Have a second set of eyes review your work before completely closing business accounts at month-end. After reviewing your work by yourself, ask your manager or supervisor to have a look at your books.<\/p>\n\n\n\n

https:\/\/www.linkedin.com\/feed\/update\/urn:li:activity:7005417847094980608\/<\/a><\/p>\n\n\n\n

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Whether you\u2019re a small business owner, a CPA, or part of a dedicated corporate accounting team, the success of your business relies heavily upon certain standardized procedures and the data they generate. This is particularly true for the accounts department, where the\u00a0month-end closing process\u00a0must be done properly to ensure the accuracy and completeness of your […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[6],"_links":{"self":[{"href":"http:\/\/omnirichfinancials.com\/blog\/wp-json\/wp\/v2\/posts\/22"}],"collection":[{"href":"http:\/\/omnirichfinancials.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/omnirichfinancials.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/omnirichfinancials.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/omnirichfinancials.com\/blog\/wp-json\/wp\/v2\/comments?post=22"}],"version-history":[{"count":1,"href":"http:\/\/omnirichfinancials.com\/blog\/wp-json\/wp\/v2\/posts\/22\/revisions"}],"predecessor-version":[{"id":23,"href":"http:\/\/omnirichfinancials.com\/blog\/wp-json\/wp\/v2\/posts\/22\/revisions\/23"}],"wp:attachment":[{"href":"http:\/\/omnirichfinancials.com\/blog\/wp-json\/wp\/v2\/media?parent=22"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/omnirichfinancials.com\/blog\/wp-json\/wp\/v2\/categories?post=22"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/omnirichfinancials.com\/blog\/wp-json\/wp\/v2\/tags?post=22"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}