Managing and keeping the accounting & bookkeeping records properly takes your business to the top position. It provides valued financial information, which is crucial to smooth business functioning. It will keep your business financially healthy in the long run. Appropriate yet comprehensive financial records help you make better business decisions, provide insights, simplify audits & tax filing and point out the areas of improvement. For every business, the month-end closing process is vital. But most companies fail to perform a month-end closing process consistently. It may be due to a variety of reasons. If you are one of them, we urge you to outsource the bookkeeping services in Dubai to Escrow Consulting Group. We can plan your month-end closing process for better financial health. It is painless and straightforward.
Are you planning to streamline the month-end closing process of your books of accounts and looking for a simple guide? Our accounting and bookkeeping experts bring you some inputs to make your month-end closing process smoother. Please read on to know:
Keep all the accounting data handy.
The first step to begin your month-end close process is gathering all the accounting data for reconciliation. For detailed information, the accounts on the income statement, accumulated costs, general ledger, and inventory. In addition, regularly maintained accounting & bookkeeping records would be helpful in the process.
Bring the necessary accounting data, & integrate it.
Without complete accounting software, there is no one option for getting all accounting data. Accounts payable and accounts receivable departments have the information needed for the month-end closing procedure. The accountant must collect the information manually if they have not been duly segregated. It is a challenging process to do at the end of the year-end. First, check out the sources of revenue, especially invoice payments and loans. Then, look into the general ledger, collect and organize the receipts of all purchases and verify their payment status before inscribing it.
Reconcile your books of accounts with bank statements
Start the reconciliation process now that you have access to all account information. Verify the bank accounts, receipts, and any external information by cross-referencing them. Verified and cross-check the prepaid accounts, cash, saving, checking accounts, petty cash, revenue, expense accounts and balance sheet. It ensures you trace the many more common financial discrepancies. In addition, it will help you understand your cash position accurately.
Do not forget fixed assets and inventory:
Physical asset valuation represents the accurate financial health of your business. It plays a key role in helping you gauge and optimize your finances. It is assumed that overstocking inventory will block the fund, and understocking leads to a loss of revenue. Write down the surplus or obsolete inventory list after comparing the physical balance to trace the potential discrepancies. In order to achieve your objectives, please keep an eye on your inventory management system and storage techniques.
Review, document, and get ready for the following month.
Financial statements are currently created from the general ledger’s compiled financial data utilizing various spreadsheets or automated systems. In addition, most accounting software provides features for organizing and consolidating statements. However, when it comes to accounting, mistakes are inevitable. Therefore, reviewing your work before completing the month-end closure procedure is usually advisable.
Our accountants suggest using a financial calendar marked with the due dates for gathering the required accounting information and reports to plan for the upcoming month. If you have a robust bookkeeping procedure and a sufficient workforce, you can expedite your month-end closure process to make it more precise and complete. On the other hand, our professionals at Escrow Consulting Group are always there to assist if you need accounting and bookkeeping services due to a lack of staff. If you require skill and knowledge for the month-end close procedure, then our team of accountants can quickly jump into crafting a standard month-end closing process for you. We have an extensive team of bookkeepers, accountants and experienced CPAs to execute the job accurately with consistency.
