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Sep 6, 2024 · Your month-end close process should include recording incoming cash, checking your AR records, and reconciling all accounts, including petty cash. It is essential to track all your business transactions, to ensure accurate records and mitigate fraud risks, guaranteeing the financial well-being of your organization. Here are some best practices ...
- Record income and expenses. Check if you’ve recorded all your incoming cash during the month and capture any missing items. Here are some incoming cash items to review
- Update accounts receivable and accounts payable. Review your accounts receivable to see if your customers are paying within the agreed credit term. Small businesses often struggle to collect money on time, resulting in poor cash flow management and bad debt.
- Prepare bank reconciliations. With account reconciliations, you’ll spot mistakes in your financial data and fraudulent transactions (if any!). Prepare a bank reconciliation to reconcile your bank account with your financial records.
- Review the petty cash fund. The petty cash fund may not seem important. But accounting for every transaction is key to avoiding discrepancies in your financial data.
7 essential steps to include in your month-end close process checklist. 1. Review financial transactions and documents. The first step in your month-end close checklist is to ensure all transactions are properly recorded and supported by appropriate documentation. Think sales invoices, expense receipts, payroll records, and bank statements.
Oct 29, 2024 · Be clear on what matters to your business, then channel your team’s efforts in the right direction to make it happen. 2. Identify Key Metrics. Identifying key metrics to monitor during the month end close is the best way to improve the workflow. These metrics could include: Financial accuracy.
Nov 11, 2024 · A month-end closing process checklist is a document that outlines all the necessary tasks that need to be completed before closing the books. It helps ensure that nothing is missed and that all the necessary tasks are completed on time. Here are some items that should be included in a month-end closing process checklist: Reconcile all accounts
Jul 23, 2024 · Month-end close process flowchart. 1. Review transactions. Review and reconcile all transactions for the month, including sales, purchases, expenses, payroll, and bank statements. 2. Accrue expenses. Identify any expenses that have been incurred but not yet recorded, and record them in the appropriate accounts. 3.
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Feb 26, 2024 · 2. Cash Allocations. The month-end close process gives a cash review of the business. You can allocate cash to each department for the expenses, payments, and costs. 3. Tax Returns & Audits. Because of updated monthly financial reports, you get help with your tax returns and annual auditing. 4. Stakeholders Interests.
