Best Practices for Monthly Accounting Close

by Feb 10, 2023Optimize Accounting

What should your accounting close process look like on a monthly basis?

This was one of the topics I recently wrote about within the CFO Connect community as part of the First 100 Days as a CFO/Finance Lead. I give you a little preview into one of the topics below 👇 , if you would like the full publication, please reach out!

I’ll cover the quarterly close process separately, as this captured more of a hard close around accruals, amortizations, etc..

  1. Bank reconciliations – Perform bank reconciliations to ensure all cash inflows and outflows are captured in the ledger appropriately.
  2. Customer accounts – Ensure all invoices generated are recorded in revenues & customer payments are captured in receivables, and book VAT collected accordingly. BONUS: Track revenue earned but not yet invoiced, as well as deferred revenue.
  3. Vendor accounts – Ensure all invoices received are recorded in expense, vendor payments are captured in payables and book VAT paid accordingly. BONUS: Track goods/services received but not yet invoiced, and prepaid expenses.
  4. VAT reconciliation – Based on above, reconcile VAT receivable/payable accounts to monthly VAT returns. Ensure payments received from/made to tax authorities are recorded appropriately & reconciled to underlying returns.

Is there anything else you would add to the list ❓

Katrina Nacci

Katrina Nacci


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