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Month-End Procedures and Tips for Financial Integrity

Learn about the importance of month-end procedures in maintaining financial integrity and accuracy. Discover fundamental accounting concepts, real-world examples, and helpful tips for conducting month-end tasks.

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Month-End Procedures and Tips for Financial Integrity

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  1. End of Month/Year Date: Tues, Oct 24/06 Room Vaseaux

  2. AGENDA • Speaker Introduction • Topic Overview • Underlying Concepts and Principles • Real World Examples • Recap • Questions

  3. SPEAKER • Charlene Scott – Implementation Manager • Finance Background • Windward Employed since 1997

  4. TOPIC OVERVIEW • Month End • Why? – Errors may go unnoticed during daily operation. • Examination of month end numbers will reveal anomalies and prompt investigation • Keeps the integrity of Financial reporting in tact. • Tips and Tricks

  5. FUNDAMENTAL CONCEPTS

  6. ACCOUNTING PERIODS

  7. MINIMUM BOOK MONTH

  8. PRIOR PERIOD ADJUSTMENTS After the month has ended? • Change the date on the transaction After the book month has advanced? • Bring the Minimum Book Month back • Make your adjustment • Advance the minimum book month forward…Don’t forget! • Reprint Financial Statements • Or Adjusting Entry in Current Period

  9. MONTH END SUGGESTED PROCEDURES 1. Complete Integrity Check routine

  10. 2. Complete Inventory Quantity Check

  11. 3. Remove Negative Stock lines

  12. 4. Create Interest Invoices

  13. 5. Create Contract/Recurring Invoices

  14. 6. Generate A/R Statements of Account

  15. 7. Generate Stock Landed Value report IMPORTANT - this report generates the information as of when the report is ran You do not specify a date. It must therefore be generated on last day of the month.

  16. Report summary • Totals = asset value of inventory at the end the period. • This + Financial reporting = snapshot of the companies performance and worth.

  17. 8. Record required Journal Entries • Accrual Entries • Depreciation • Monthly Charges • Bank Fees • Automatic Debit

  18. 9. Reconcile Bank and Clearing accounts. On line Banking allows for timely completion

  19. 10. Advance the Minimum Book month

  20. 11. Print your Reports • Balance Sheet • Income Statement • Aged AR & AP • GMROI

  21. Value Added Exercise Matching Sub Ledger to the Ledger Aging Reports = Ledger Balance

  22. Sub Ledger Report

  23. Year End suggested procedures ADDITIONS • Physical Item count • Ensure all received stock is entered • Complete all open work orders with stock that has been delivered. • Generate stock Landed Value • Close the Financial Year

  24. 1. Complete Integrity Check routine

  25. 2. Complete Inventory Quantity Check

  26. 3. Remove Negative Stock lines

  27. NEW 4. Receive all PO’s • Update stock received

  28. NEW 5. Complete all work orders • After receipt of PO’s fill work orders

  29. NEW 6. Count your Inventory • Remember to include all items reserved (W/O’s,layaways, and RMA’s) when counting

  30. IMPORTANT 6a. If you cannot complete the Fast Stock Entry on last day of year • Save count file for later updating

  31. IMPORTANT 6b. If possible, complete the Fast Stock Entry before opening for business in new period • Fast Stock Entry settings recommended

  32. 7. Generate Stock Landed Value Report End of Business last day of the year – Generate the report

  33. 8. Create Interest Invoices

  34. 9. Create Contract/Recurring Invoices

  35. 10. Generate A/R Statements of Account

  36. 11. Reconcile bank and clearing accounts. On line banking allows for timely completion

  37. 12. Record required journal entries • Accrual entries • Depreciation • Monthly charges • Bank fees • Automatic debit • Entry for adjusted inventory value

  38. 13. Advance the minimum book month

  39. 14. Print your reports • Balance Sheet • Income Statement • Aged AR & AP • GMROI

  40. 14. Close the financial year • Opens a new accounting period • Transfers the income statement profit/loss to retained earnings

  41. Recap • Importance of Min Book Month • Maintain Integrity • Utilities = accurate Item Count • Item Count = accurate Valuation • Reporting • Inventory • Financial • Back up to Financials

  42. Questions

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