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Accounting Monthly Closing Checklist

August 14, 2025 by
Ali Piraei
1. *Bank Reconciliation:*
-Examine and reconcile bank statements.
-Confirm outstanding checks and deposits.

2. *Journal Entries:*
-Record necessary adjustments for accruals and deferrals.
-Update depreciation for fixed assets.
-Adjust prepaid expenses and unearned revenue.

3. *Accounts Receivable:*
-Reconcile accounts receivable balances.
-Verify the allowance for doubtful accounts.

4. *Accounts Payable:*
-Reconcile accounts payable balances.
-Ensure the accuracy of recorded expenses.

5. *Payroll:*
-Review payroll transactions for correctness.
-Verify tax withholdings and other deductions.

6. *Fixed Assets:*
- Update the fixed asset register.
- Record any disposals or additions to fixed assets.

7. *Inventory:*
-Compare physical inventory with recorded amounts.
-Adjust inventory levels as necessary.

8. *Liabilities:*
-Ensure all liabilities are accurately recorded.
-Reconcile outstanding loans or credit balances.

9. *Expense Review:*
-Review all expenses for accuracy and proper classification.
-Confirm that all incurred expenses are documented.

10. *Revenue Recognition:*
- Ensure proper recognition of revenue.
- Review deferred revenue and recognize it as appropriate.

11. *Financial Statements:*
-Prepare financial statements (Income Statement, Balance Sheet, Cash Flow Statement).

12. *Analysis:*
-Analyze financial statements for trends and discrepancies.
-Conduct variance analysis against budget or forecast.

13. *Closing Entries:*
-Close temporary accounts (e.g., revenue, expenses) to retained earnings at year-end.

14. *Documentation:*
- Ensure all supporting documents are filed correctly.
- Maintain a clear audit trail for all transactions.

15. *Backup and Security:*
- Backup financial data and store it securely.
- Review access controls and restrict access as necessary.

16. *Final Review:*
- Conduct a comprehensive review of the entire closing process.
- Verify that all required steps have been completed correctly.

17. *Reporting:*
-Distribute financial reports to all relevant stakeholders.
- Respond to any questions or concerns raised.

18. *Compliance:*
-Ensure adherence to accounting standards and regulations.
-Record any modifications in accounting policies or practices.

19. *Future Planning:*
- Identify opportunities for process enhancement.
- Strategize for the upcoming months and anticipate potential challenges.

20. *Audit Preparation:*


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in News
Ali Piraei August 14, 2025
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