Could you assist with a walkthrough for the month-end close process?

Certainly! A month-end close is the process companies undertake to ensure their financial books are accurate and complete at the end of each month. This procedure involves several steps. Here’s a detailed walkthrough to help you:
Pre-Close Preparation:
Review Unposted Transactions: Ensure all transactions that need to be recorded in the current month are posted.
Check Cut-off Dates: Confirm that all necessary documentation, such as invoices and receipts, are dated correctly and processed within the reporting month.
Reconciliation Process:
Bank Reconciliations: Match your bank statements with your Accounting records to ensure that all cash transactions are recorded accurately.
Account Reconciliations: Review balances for key accounts (like accounts receivable, accounts payable, and inventory) to spot discrepancies.
Revenue Recognition:
Verify that all revenue for the month has been recorded in accordance with your Accounting policy and standards like GAAP or IFRS.
Expense Review and Accruals:
Ensure all expenses incurred during the month are recorded. For expenses that have been incurred but not yet billed, create appropriate accrual entries.
Review and Adjust Journal Entries:
Post adjusting entries for depreciation, amortization, and any necessary deferrals or accruals.
Financial Statements Preparation:
Generate preliminary financial statements, including the income statement, balance sheet, and cash flow statement.
Analysis and Variance Reporting:
Analyze financial statements to identify significant variances from budgets or prior periods and investigate the reasons for these discrepancies.
Review and Approval Process:
Have financial statements and reconciliations reviewed by a senior finance manager or controller for accuracy.
Final Adjustments:
Based on the review, post any final adjustments required.
Reporting:
Finalize the financial statements and prepare management reports highlighting financial performance and variances.
Documentation:
Ensure all relevant documentation is stored comprehensively to support the financial statements and adhere to Audit requirements.

A well-executed month-end close increases the reliability of financial reports and provides a clearer picture of a company’s financial health. Remember, consistent organization and adherence to deadlines are key in ensuring a smooth month-end close process.