5 Checklist Items for a More Effective Month End Process

March 15, 2022

By: Luis Rivera

The end of the fiscal year is the most important closing period for most companies. To make this process smooth and efficient, organizations should have a well-planned month-end closing process in place. If done correctly, these closings can help your organization stay in good financial standing, as they allow you to track journals, transactions, and reports early enough in the year to correct any discrepancies.  If your team is effective, a month-end closing process can be done in as little as five days. Below are five checklist items to ensure a smooth month-end close.

1. Accounts Receivable: Verify and ensure that all income received throughout the month is recorded accurately, including cash, invoices, loans, or other revenue. You also need to ensure that all amounts received by customers are correct.

2. Accounts Payable: Utilize the money received above to ensure that all purchases and bills have been paid on time and for the correct amounts. To track your spending, utilize expense reports, company cards, and invoices payments.

3. Account Reconciliation: During the accrual process, ensure that all transactions match and are verified with the vendor, businesses, and banks.

4. Financial Statements: Have your team organize your closing financial statements. They should review balance sheets, revenue sheets, and expense sheets. Your credits and debits should have a net value of zero as their account balance in the end. Ensuring that these financial reports are correct will provide your organization with an accurate view of its financial data and will help them make informed decisions.

5. Forecasting: Use the information discovered in the month-end close to plan for the months to come. Create a business financial plan to address any risks discovered. Finding ways to use an automation process can cut down on costs and increase employee productivity.

Above all, the best way to make your organization’s month-end process most efficient is to use a system that supports you. If you want to see one example of a system that can streamline your close process, check out a daily Sage Intacct coffee break demo.