Month-end & Year-end Accounting Procedures

  1. Review the following reports for valid transactions. Audit all older entries for accuracy and create appropriate transactions to correct any inaccuracies in the reports. It is important to perform these reviews in advance of your accounting period end to ensure sufficient time to prepare any subsequent adjusting transactions.
    1. Accrued Payables Report.
    2. Prepaid Payables Report.
    3. Stock Transfers in Transit.
    4. Supplier Returns in Transit.
    5. WIP Valuation Report - Ensure the material is physically located in the warehouse.
    6. Unapplied Deposit Report.
  2. NOTE: The ‘WIP Valuation’ report CANNOT be backdated. So it is imperative that this report is run prior to any new activity in the next accounting period and saved in an appropriate location for future reference as a supporting sub-ledger report to the Work In Process general ledger account.
  3. Bank Reconciliation – Ensure reconciliations are current.
  4. Shipments Not Invoiced report – All completed shipments should be invoiced.
  5. All Cash Drawers must be Closed and Confirmed.
  6. Bank Deposits must be completed.
  7. Verify any remaining balances in Contra AR/AP account.
  8. Reconcile the following sub-ledger reports to the applicable General Ledger balance (Save all reports to a secure location for possible subsequent audit requirements):
    1. Accounts Payable Aging Report: reconcile to Trial Balance ‘Account Class’ = ‘Accounts Payable’
    2. Accounts Receivable Aging Report: reconcile to Trial Balance ‘Account Class’ = ‘Accounts Receivable’
    3. Accrued Payables Report: reconcile to Trial Balance ‘Account Class’ = ‘Accrued Payables’
    4. Prepaid Payables Report: reconcile to Trial Balance ‘Account Class’ = ‘Prepaid Payables’
    5. Stock Transfers In Transit Report: reconcile to Trial Balance ‘Account Class’ = ‘Stock Transfers In Transit’
    6. Stock Valuation Report: reconcile to Trial Balance ‘Account Class’ = ‘Inventory’
    7. Supplier Returns In Transit Report: reconcile to Trial Balance ‘Account Class’ = ‘Supplier Returns In Transit’
    8. Unapplied Deposit Report: reconcile to Trial Balance ‘Account Class’ = ‘Customer Deposits’
    9. WIP Valuation: reconcile to Trial Balance ‘Account Class’ = ‘Work In Process’
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Comments

  • Avatar
    Kerry Geiger

    Is it Trial Balance? There is a typo in Trial... Trail balance.

  • Avatar
    Patrick Teas

    Thanks Kerry. Typos fixed up.