Best Practices for Monthly Accounting Close
What should your accounting close process look like on a monthly basis?
This was one of the topics I recently wrote about within the CFO Connect community as part of the First 100 Days as a CFO/Finance Lead. I give you a little preview into one of the topics below 👇 , if you would like the full publication, please reach out!
I’ll cover the quarterly close process separately, as this captured more of a hard close around accruals, amortizations, etc..
Bank reconciliations - Perform bank reconciliations to ensure all cash inflows and outflows are captured in the ledger appropriately.
Customer accounts - Ensure all invoices generated are recorded in revenues & customer payments are captured in receivables, and book VAT collected accordingly. BONUS: Track revenue earned but not yet invoiced, as well as deferred revenue.
Vendor accounts - Ensure all invoices received are recorded in expense, vendor payments are captured in payables and book VAT paid accordingly. BONUS: Track goods/services received but not yet invoiced, and prepaid expenses.
VAT reconciliation - Based on above, reconcile VAT receivable/payable accounts to monthly VAT returns. Ensure payments received from/made to tax authorities are recorded appropriately & reconciled to underlying returns.
Is there anything else you would add to the list ❓