MONTH-END CLOSING CHECKLIST

 

 

The use of a month-end closing checklist increases the accuracy of the Financial Statement and General Ledger.  It provides a step by step procedure for verifying the completion and review of month-end tasks.  As each item is completed on the list, simply ask the person responsible for completing the task to initial the closing checklist.  Then, mark it off the list and proceed to the next item.

 

1.)  Cash in Bank Balances:

 

[   ]  All bank accounts have been reconciled from the balance per the bank statement at the end of the month to the updated general ledger balance.  All unusual reconciling items have been investigated, documented, and resolved.  (Prior to reconciliation, the general ledger balance must be updated to reflect all quarterly entries.  All bank reconciliations must be prepared by an employee who is not involved in the cash receipts and disbursements functions)

 

Done by:                   __________________________        Date:  __________________

 

Reviewed by:             __________________________        Date:  __________________

 

[   ]  If more than one bank account or preparer of bank reconciliations, verify that all bank reconciliations are initialed and dated by the preparer.

 

Verification By:          __________________________        Date:  __________________

 

[   ]  As evidenced by initials and date, Manager has reviewed all bank reconciliations.

 

Reviewed by:             __________________________        Date:  __________________

2. Accounts Receivable - Trade

 

[   ]  General Ledger balance and balance of detailed accounts receivable have been reconciled.  All reconciling items have been investigated, documented, and resolved.  Journal entries required to resolve open items have been prepared.

 

Done by:                   __________________________        Date:  __________________

 

Reviewed by:             __________________________        Date:  __________________

 

All customer account receivable balances have been reviewed for collectibility giving proper consideration to the following factors:

 

[   ]  All significant past due accounts,

 

[   ]  All disputed invoices and erroneous billings,

 

[   ]  All unissued credits.

 

Done by:                   __________________________        Date:  __________________

 

Reviewed by:             __________________________        Date:  __________________

 

The allowance for doubtful accounts has been determined as the sum of the specific and general reserves and has been treated as an offset of current trade receivables.

 

All required journal entries to record specific reserves for disputed invoices, erroneous credits, and doubtful accounts have been made against bad debt expense:

 

[   ]  Debit bad debt expense.

[   ]  Credit allowance for doubtful accounts.

 

Done by:                   __________________________        Date:  __________________

 

Reviewed by:             __________________________        Date:  __________________

 

All specific trade invoices determined to be uncollectible have been written off against the allowance for doubtful accounts.  (All approval for the write-off of uncollectible accounts has been made by individuals without direct access to incoming cash receipts or accounts receivable ledgers).

 

[   ]  Debit allowance for doubtful accounts.

 

[   ]  Credit accounts receivables - trade.

 

Done by:                   __________________________        Date:  __________________

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Reviewed by:             __________________________        Date:  __________________

 

3. Other Receivables (including notes)

 

[   ]  All other receivables are supported by account analyses and have been evaluated as to collectibility.  Adjustments to receivable balances have been made as required.

 

Done by:                   __________________________        Date:  __________________

 

Reviewed by:             __________________________        Date:  __________________