Month-End Close

Month-End Close

Month-End Close Checklist

?--? 1. Confirm all period transactions are entered
?--? 2. Reconcile all bank and credit card accounts
?--? 3. Review AR aging -- unapplied payments?
?--? 4. Review AP aging -- unpaid bills?
?--? 5. Post accruals (revenue earned not invoiced; expenses incurred not billed)
?--? 6. Post prepaid expense amortization
?--? 7. Post depreciation on fixed assets
?--? 8. Reconcile payroll to payroll reports
?--? 9. Run Trial Balance -- does it balance?
?--? 10. Review P&L for unusual items
?--? 11. Review Balance Sheet for reasonableness
?--? 12. Fix any discrepancies
?--? 13. Lock the period in QuickBooks
?--? 14. Save all supporting documents
?--? 15. Send reports to leadership

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Accrual Entries

Accrued Expense -- Payroll worked Oct 25--31, paid Nov 5:

Oct 31: Dr. Salaries Expense $3,200 / Cr. Accrued Payroll $3,200
Nov 5:  Dr. Accrued Payroll $3,200 / Cr. Cash $3,200

Accrued Revenue -- Consulting delivered Oct, invoice sent Nov 1:

Oct 31: Dr. Accounts Receivable $5,000 / Cr. Consulting Revenue $5,000

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Prepaid Amortization

$12,000 annual insurance paid Jan 1 ?*' $1,000/month:

Monthly: Dr. Insurance Expense $1,000 / Cr. Prepaid Insurance $1,000

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Depreciation

$6,000 laptop over 3 years = $167/month:

Monthly: Dr. Depreciation Expense $167 / Cr. Accumulated Depreciation $167

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Locking the Period

Edit > Preferences > Accounting > Set Closing Date + password.

Any edits to closed periods require the password. Corrections go in the current period.