Performing a pre-close review of key accounts

Performing a pre-close review of key accounts

Performing a pre-close review of key accounts helps you catch and resolve issues before the month-end close. This proactive approach reduces errors, ensures accuracy, and streamlines the final closing process. Here’s a step-by-step guide for small businesses to conduct an effective pre-close review:

1. Review Bank Reconciliations

Ensure all bank accounts are reconciled by verifying that recorded transactions match bank statements.

2. Analyze Revenue Recognition

Ensure all revenue earned during the period is recorded, and deferred or unearned revenue is handled correctly.

3. Reconcile Accounts Receivable and Payable

Match outstanding invoices with payments received.

4. Check Accruals and Prepaids

Review accrued expenses to ensure liabilities are recognized and prepaid expenses are allocated correctly.

5. Review Payroll Entries

Verify that payroll expenses, taxes, and deductions are recorded correctly.

6. Assess Budget Variances

Compare actual figures against your budget to spot any significant variances.

By following these steps, small businesses can reduce errors, ensure accuracy. At Caramel Advisors, we help businesses implement best practices for efficient financial reporting. Contact us to enhance your month-end close strategy