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.