Overview
A month end close checklist is a useful tool for managing your accounting records for accuracy. A good month end close will consist of three types of procedures that are described in more detail below:
  • Balance Sheet Reconciliations
  • Process Integrity Checks
  • Analytical Reviews
Balance Sheet Reconciliations
Balance sheet reconciliations are used to ensure you are reporting the correct value of your assets and liabilities at month end. Reconciling the total of the balance sheet account value to a detailed listing helps you catch any errors that may have been made.  
GL Account Process Goal
 Cash  Bank Reconciliation  Find any missing transactions that are not recorded in your books.
 Unapplied Cash -Reconcile to balance by Customer.
-Compare unapplied cash to outstanding AR for customers. 
-Confirms that the customers with unapplied cash do not have invoices that their cash receipts should be applied to.
-Confirms that any other transactions have not been accidentally booked to this GL Account.
 Accounts Receivable  Reconcile to Balance by Billing record -Confirms that the amount owed in total matches the amount owed as a sum of the individual billing records. Ensures that cash has been applied in the correct period.
-Confirms that any other transactions have not been accidentally booked to the AR Control Account.
 Accounts Payable  Reconcile to balance by account payable record -Confirms that the amount owed in total matches the amount owed as a sum of the individual billing records. 
-Confirms that any other transactions have not been accidentally booked to The AP Control Account.
 Vouchers Payable  Reconcile to balance by unrecieved Purchase Order Line -Confirms that the amount owed in total matches the amount owed as a sum of the individual recieved purchase order records. 
-Confirms that any other transactions have not been accidentally booked to this GL Account.
 Payroll  Reconcile to labor expense for company if using labor costing from Accounting seed time cards  Accurately account for labor in the general ledger
 Inventory  Reconcile to quantity and value by Product  Confirms Inventory is valued correctly.
 Deferred Revenue Reconcile to balance by billing record.  Confirms revenue has been recognized correctly.
 
Process Integrity Checks
Process integrity checks help you determine that all records are accounted for in your financials. The goals of these types of checks is to confirm completeness and find missing records. These types of checks will vary greatly between different organizations. Below are some examples of process checks.
  Process name  Process description  Reports Objects Used
 Closed Won Opportunities All closed won opportunities have been billed (If using Opportunity to billing)
All order management opportunities have sales orders associated with them
 Opportunities
 Recurring Billing  All recurring billing contracts have been billed.  Recurring Billing
 Sales Orders  All inventory sales order lines have been allocated and shipped.
All shipped sales orders have been billed (If using Shipping to Billing)
 Sales Order Lines
 Sale Order lines with or without billing lines
 Work Orders  All completed work orders have been built  Projects
 Purchase Orders All closed purchase orders have been recorded in Accounts payable. 
All received purchase order lines have been paid
 Purchase Orders
 Purchase Order Lines with or without account payable lines
 
Analytical reviews
Analytical reviews of your financial data help you to determine reasonableness in your GL account balances. Large fluctuations in balances should be subject to a more detailed review.   
 Area Process
 Balance Sheet  Trial balance review of opening balance, current period activity and ending balance. 
 Profit & Loss  Review transactions by Accounting Period and GL Account.
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1 Comments

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    Rebecca Ralls

    This is super helpful! Thanks for putting together such a well organized list.

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