Basic Accounting Monthly Closing Checklist

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Basic Accounting Monthly Closing Checklist

 

 

  1. Bank Reconciliation:
    – Review and reconcile bank statements.
    – Verify outstanding checks and deposits.

    Journal Entries:
    – Record adjusting entries for accruals and deferrals.
    – Update depreciation for fixed assets.
    – Adjust prepaid expenses and unearned revenue.

    3. Accounts Receivable:
    – Reconcile accounts receivable.
    – Verify the allowance for doubtful accounts.

    4. Accounts Payable:
    – Reconcile accounts payable.
    – Confirm the accuracy of recorded expenses.

    5. Payroll:
    – Review payroll transactions for accuracy.
    – Confirm tax withholdings and other deductions.

    6. Fixed Assets:
    – Update fixed asset registers.
    – Record disposals or additions to fixed assets.

    7. Inventory:
    – Verify physical inventory against recorded amounts.
    – Adjust inventory levels as needed.

    8. Liabilities:
    – Confirm all liabilities are recorded.
    – Reconcile outstanding loans or credit balances.

    9. Expense Review:
    – Review all expenses for accuracy and proper classification.
    – Confirm that all incurred expenses are recorded.

    10. Revenue Recognition:
    – Confirm proper recognition of revenue.
    – Review deferred revenue and recognize as appropriate.

    11. Financial Statements:
    – Generate financial statements (Income Statement, Balance Sheet, Cash Flow Statement).

    12. Analysis:
    – Analyze financial statements for trends and anomalies.
    – Conduct variance analysis against budget/forecast.

    13. Closing Entries:
    – Close temporary accounts (e.g., revenue, expenses) to retained earnings.

    14. Documentation:
    – Ensure all supporting documentation is filed appropriately.
    – Maintain a clear audit trail for all transactions.

    15. Backup and Security:
    – Backup financial data and store it securely.
    – Review access controls and restrict as necessary.

    16. Final Review:
    – Perform a final review of the entire closing process.
    – Confirm all necessary steps have been completed accurately.

    17. Reporting:
    – Share financial reports with relevant stakeholders.
    – Address any queries or concerns.

    18. Compliance:
    – Ensure compliance with accounting standards and regulations.
    – Document any changes in accounting policies or practices.

    19. Future Planning:
    – Identify areas for process improvement.
    – Plan for upcoming months and potential challenges.

    20. Audit Preparation:
    – Prepare for internal or external audits.
    – Document any issues or areas of concern for follow-up.

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