How to Do Month-End Accounting Procedures

Apply the code of ethics for accountants, emphasizing integrity, objectivity, confidentiality, and competence with due care. Learn how CPD and professional behavior protect the public interest during month-end procedures.

Develop the 21st-century accounting skill set: attention to detail, analytical and numerical abilities, strong communication, proficient accounting software usage, and balancing speed with accuracy to meet deadlines.

Master the month end accounting process with the month end close handbook and download it as you build a dynamic, globally mobile career with ACA, ACCA, and CIMA.

Follow a step-by-step instruction guide for month-end accounting procedures to build practical competencies and become a hands-on, intelligent accountant.

Apply a three-step framework to month-end closing: correct errors in the general ledger, then perform adjustments and reconciliations, and finally produce month-end reports for management.

Establish closing date, lock ledger periods, and run a trial balance to detect and correct errors for accurate month-end reporting. Review transactions and post adjusting entries, then verify final balance.

establish a closing date by which all expenses and revenue must be posted, and communicate it to all ledger users to lock the books at period end.

Learn how to generate and review a trial balance, perform error of principle and arithmetical checks, and prepare adjustments and reconciliations during month-end procedures.

Record month-end accruals by posting accrued expenses and revenues via journal entries, including casual wages and a credit sale to Peacock Interiors, then reverse accruals when invoices arrive.

Learn how to record a month-end prepayment adjustment for a prepaid rent and internet charges, moving the expense to a balance sheet prepayment and updating the journal.

Learn how to calculate and post depreciation adjustments for month-end and year-end, handle asset disposals, and reconcile fixed assets with journal entries and corporation tax considerations.

Utilize the month-end adjustments checklist to back up data, post prepaid expenses, accrue expenses and revenues, and calculate depreciation, ensuring all adjustments are complete before reconciliations.

Learn to perform creditors reconciliation by compiling opening balances, total invoices, and payments; verify against the creditors control account in your accounting software using source documents and a checklist.

Learn how to perform bank reconciliation at month-end by comparing cash book balances with bank statements, identify discrepancies, and record reconciling items to ensure accurate financial statements.

Value closing stock at month-end using the lower of cost and net realizable value, via a physical stocktake and journal entries affecting opening inventory and cost of goods sold.

Learn to reconcile the VAT control account at month-end by matching sales and purchases VAT, verifying boxes on the VAT return, and ensuring source documents align.

Compare net pay reports from the payroll manager with accounting postings to reconcile the wages control account at month-end, using accruals and the PNL and balance sheet.

perform month-end balance sheet reconciliation by preparing documentation, analyzing and reviewing account activity, and retaining supporting notes to corroborate balances with the general ledger and notes.

Generate the adjusted trial balance after adjustments and reconciliations, listing all general ledger accounts with debit or credit balances, using QuickBooks reports for a chosen date range.

Learn how to generate the profit and loss report, a key income statement that summarizes revenues, costs, and expenses over a period, using accounting software like QuickBooks.

Learn to print and customize a month-end balance sheet report, understand assets, liabilities, and owner's equity, and apply the equation assets equals liabilities plus owner's equity.

Generate the accounts payable aging report to categorize invoices by 0 to 30 days old, 31 to 60 days old, 61 to 90 days old, and older than 90 days.

generate the accounts receivable aging report to view unpaid invoices by aging bands such as 1–30, 31–60, 61–90, and 91+, as of a chosen date to prioritize collections.

Design a focused management accounts report for decision making, featuring cover page, executive summary, profit and loss, balance sheet, cash flow forecast, and aging of receivables and payables.

Perform general ledger checks and correct mispostings with annotated journal entries, complete payroll updates, reconcile bank accounts, post depreciation, prepayments, and accruals, and generate management reports with ratio analysis.