When managing bills and business finances, creating a monthly closing checklist is essential for maintaining organization and ensuring accuracy. Start by reviewing all outstanding invoices and bills to confirm their accuracy and completeness. Follow up on any discrepancies or outstanding payments to avoid discrepancies and maintain financial integrity.
Next, reconcile bank statements with accounting records to ensure that all transactions are accounted for and accurately recorded. Verify the accuracy of income and expense entries, including categorizing expenses properly to facilitate accurate financial reporting.
This is important not only to balance your books, but to help prevent fraud as well.
Check inventory levels and reconcile them with sales records to ensure accurate cost of goods sold calculations. Address any discrepancies promptly to prevent inventory discrepancies and ensure proper valuation of assets. Review financial statements and monthly accounting reports, including profit and loss statements and balance sheets, to assess the overall financial health of the business. Identify any trends or anomalies that may require further investigation or corrective action.
Finally, update budgets and forecasts based on actual performance and adjust projections as needed to reflect current financial realities. By following a comprehensive monthly closing checklist, businesses can maintain financial discipline, identify areas for improvement, and make informed decisions to drive growth and success.
