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Key Points: Monthly Accountant Checklist
A structured monthly accounting close ensures financial accuracy, mitigates risks, and keeps your company audit-ready. This 13-step workflow covers everything from bank reconciliation to compliance, providing management with reliable financial health indicators.
The 13-Step Monthly Accounting Workflow
1. Bank & Cash Management
- ✅ Reconcile all bank and credit card accounts.
- ✅ Investigate any discrepancies immediately.
- ✅ Update petty cash transactions and balances.
2. Accounts Payable (AP)
- ✅ Review and process vendor invoices.
- ✅ Schedule and release vendor payments.
- ✅ Verify purchase orders, goods received, and invoices match.
3. Accounts Receivable (AR)
- ✅ Issue customer invoices promptly.
- ✅ Follow up on outstanding receivables.
- ✅ Apply customer payments accurately.
4. Payroll
- ✅ Calculate salaries, benefits, and deductions.
- ✅ Process monthly payroll on schedule.
- ✅ Submit employee tax and social contributions.
5. General Ledger (GL) Review
- ✅ Review ledger entries for unusual or incorrect postings.
- ✅ Adjust misclassified or wrong entries.
- ✅ Post monthly journal entries (accruals, depreciation, etc.).
6. Inventory Management
- ✅ Reconcile inventory records.
- ✅ Record adjustments for damages, losses, or theft.
- ✅ Verify inventory valuation methods (FIFO, LIFO, Weighted Average).
7. Fixed Assets Management
- ✅ Record additions or disposals of assets.
- ✅ Post monthly depreciation.
- ✅ Update asset register.
8. VAT / Tax Compliance
- ✅ Review VAT inputs and outputs.
- ✅ Prepare VAT returns.
- ✅ Ensure all tax deadlines are met.
9. Accruals and Prepayments
- ✅ Review monthly accruals for unpaid expenses.
- ✅ Adjust prepaid expenses.
10. Financial Reporting
- ✅ Prepare Trial Balance, Profit & Loss, and Balance Sheet.
- ✅ Analyze month-on-month variances.
- ✅ Highlight key financial indicators to management.
11. Budget Review
- ✅ Compare actual results to budget forecasts.
- ✅ Analyze significant variances.
- ✅ Report findings to management.
12. Internal Controls & Compliance
- ✅ Ensure all transactions comply with policies.
- ✅ Review any financial irregularities.
- ✅ Update necessary compliance checklists.
13. Backup & Documentation
- ✅ Backup financial systems and documents.
- ✅ Organize physical and digital files for audit-readiness.
