Month-end closing is more than posting the last invoice. It is a structured process that checks whether documents, bank records, customers, suppliers, taxes and management reports are aligned.
What a close should cover
- Review received and missing documents
- Reconcile bank statements and cash records
- Check customer and supplier balances
- Review tax and calculation records
Practical application depends on company size, industry, existing procedures and documentation. The rule should be clear, responsibility assigned and evidence of control retained.
Clear responsibilities
- Assign responsibility for document collection
- Set internal deadlines before statutory deadlines
- Record open issues and owners
- Confirm completion of every control point
Practical application depends on company size, industry, existing procedures and documentation. The rule should be clear, responsibility assigned and evidence of control retained.
Management reporting
- Revenue and expenses by major category
- Cash flow and overdue receivables
- Variances from budget or prior period
- Risks requiring management decisions
Practical application depends on company size, industry, existing procedures and documentation. The rule should be clear, responsibility assigned and evidence of control retained.
Common weaknesses
- Documents arrive after closing
- Balances are checked only at year-end
- Adjustments are not documented
- Reports are produced without a clear business purpose
Practical application depends on company size, industry, existing procedures and documentation. The rule should be clear, responsibility assigned and evidence of control retained.
How AS LEGATT can help
AS LEGATT helps connect accounting, administration, digital services and internal procedures. Support is adapted to the client’s operations and software environment.