A month-end close is the process of reviewing, reconciling, and finalizing your books. It separates businesses with clear financial visibility from those that are guessing.
1. Categorize All Transactions
Review every transaction from the month. Flag items needing clarification.
2. Reconcile All Accounts
Match every transaction against statements. Ending balances must match exactly.
3. Review Accounts Receivable
Update AR aging. Follow up on overdue invoices.
4. Review Accounts Payable
Confirm all bills are entered. Review outstanding payables.
5. Review Payroll
Confirm all payroll is recorded correctly with proper tax withholdings.
6. Generate Financial Statements
Produce P&L and Balance Sheet. Compare to prior month and budget.
7. Communicate Results
Provide the business owner with key metrics: revenue, expenses, net income, cash position.
Disclaimer: The information provided is for general educational purposes only and does not constitute tax, legal, or investment advice. This content is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. Tax outcomes depend on your specific facts and circumstances. Viewing this material does not create a CPA-client relationship. Personalized advice is provided only through a signed engagement letter.
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