Month End Close Checklist

Know your numbers

Is your accounting system in balance?

Businesses ask how do I measure this?

Try these month–end closing tips to keep your finances on track. Resolve issues timely so the end of the year goes smoother. Make sure you cash balance is accurate and you understand your profit position as you progress thru the year. This gives management and the business owner vital information in order to run a growing small business.

Start with basics steps to Measure your accounting system balances and a month end close checklist.

If you are using an accrual accounting method, follow these simple steps each month to confirm your key balances are ok.

Step 1. General Ledger Report

Print the General Ledger Trial Balance using the last day of month once all activity for the month has been entered.

Step 2. Aged Receivables Report

Print the Customer Aged Receivables Report – a detail list of how much your customers owe your business.

The Accounts Receivable general ledger account balance found on the General Ledger Trial Balance should = the total amount due found on the Aged Receivables Report

Step 3. Aged Payable Report

Print the Vendor Aged Payable Report – a detail list of how much you owe other businesses or individuals

The Accounts Payable general ledger account balance found on the General Ledger Trial Balance should = the total amount due found on the Aged Payable Report

Step 4. Inventory Valuation Report

Print the last page of the inventory valuation report – a detail list of the items you have in your warehouse and their value.

The Inventory general ledger account balance found in the General Ledger Trial Balance should = the total inventory valuation amount found on the Inventory Validation Report

Step 5. Payroll Gross Wage Report

If your company calendar year is January to December, then print the year to date payroll earnings report or get it from your payroll service provider.

The Payroll Amounts for Salary and Wages Accounts found on the General Ledger Trial Balance should = The total YTD Gross on the Yearly Earnings Report

Step 6. Cash Balance

Perform your monthly bank reconciliation – when completed it should agree to the available cash balance in your checkbook.

The Cash Accounts general ledger balances found on the General Ledger Trial Balance should = the reconciled checkbook balance once the bank reconciliation has been completed.

What if I am a cash based business?

Then the bank reconciliation is a critical step so you confirm all the money you are spending has been recorded and all the money you are being paid and have deposited has been recorded.

What else do I need to consider?

There may be many more steps that need to be completed each month. A month end checklist is important to help you make sure necessary tasks are being completed each month.

What if my accounting system is not in balance after I complete my month end close checklist?

If you find discrepancies on any of these steps it might be time to speak with your CPA, bookkeeper or find a local accounting software consultant to find the root cause. Make corrections to how your system is setup and give counsel to how to properly record the transactions. Software Training