- Month-end closing ensures that you have information about your company’s financial situation and are ready to report on those figures. It is critical when making short-term decisions and helps your teams work towards your organization’s long-term goals.
- Plus, accurate monthly reporting makes year-end closing much easier to understand.
- The month-end closing process is critical to any business but can be very time-consuming.
- Creating the right month-end close checklist allows your team to break out of reporting silos and to focus on more strategic business functions.
- Below are some of the key areas where we can assist a smooth month-end process.
Your month-end close process should include recording incoming cash, checking your AR records and reconciling all accounts, including petty cash.
Track all your business transactions, ensure accurate records and mitigate fraud risks. Remain up to date on the financial well-being of your organization.
Your month-end close checklist should include categories, task descriptions, task prioritization, names of the preparers and the reviewers, and offer a full review of financial statements.
The benefits of a month-end close checklist are error reduction, improved reporting results, increased efficiency and preparing your company to be audit-ready.
Common mistakes companies make during their month-end close process are duplicate data entry, unstandardized processes, delays in information and lack of automation.
Perform variance analysis between Actuals Vs Budget Vs Forecast to provide solid understanding on the deviations.