At the end of each month, you should have some type of system you follow to make sure you are closing the month's financial data properly. This will ensure more accurate records. To manage month end, some procedures must be followed to do so.
- Sales and cash receipts must be accurately recorded. By making sure that the money received for the month (including the last day of the month) is recorded in that month, you will make reconciling much simpler.
- Any accounts payable checks written for the month must be put through by the last day of the month in the accounting records.
- Inventory must be updated for all sales orders (closed out as invoiced). All orders that were actually ordered for the month must be input into the system by the end of the mont. In addition, counts and recount procedures must be done by the warehouse to ensure accurate inventory on hand.
- Miscellaneous charges to bank account recorded accurately.
- Any checks written for miscellenous items/charges for the entire month must be recorded in the system by month end.
- All journals/modules (cash receipts, sales, inventory, accounts payable) must be updated for all transactions by the end of the month.
Keeping the month end procedures working systematically will make your accounts accurate and up to date.
Copyright Jeanine Pfeiffer