business

Month-End Close Reminders/Considerations

1. Bank Reconciliation:
   • Reconcile payroll bank accounts, credit cards, loans, and other Balance Sheet accounts to ensure accuracy.
2. Accruals and Prepayments:
   • Review and adjust any accrued liabilities or prepaid expenses.
   • For Employers: Verify that employee benefits and vacation accruals are accurate.
3. Inventory, if applicable:
   • Perform a physical inventory count and adjust for any write-offs.
4. Fixed Assets:
   • Verify that fixed assets are properly reflected on the Balance Sheet.
   • Book accumulated depreciation.
   • Expense any small asset purchases per the company’s capitalization policy.
5. Accounts Receivable and Payable:
   • Review and clean up aging reports; write off uncollectible client invoices.
6. For Employers – Review Payroll:
   • Ensure all employee hours are accurately recorded.
   • Verify that all pay rates, deductions, and benefits are up to date.
   • Confirm payroll taxes have been calculated correctly.
   • Review and reconcile all employee expense reports and ensure proper documentation for any reimbursements.
7. Financial Statement Preparation:
   • Prepare monthly income statements, balance sheets, and cash flow statements.
   • Ensure all payroll-related accounts are properly reflected.

If you need further details or have questions, please contact your Linkenheimer CPA.