Learn Accounting Closing Procedure in 16 Steps Only

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We are Sharing With You to Learn Accounting Closing Procedure in 16 Steps Only . So kindly Check Out our http://www.castudynotes.com website and ALL the Best for Your upcoming Exams.

CA STUDY NOTES

Accounting Closing Procedure – 16 Steps

Balance Sheet Side

Step # 1 Bank Reconciliation

Ø If possible do it on a weekly basis.

Step # 2 Accounts Receivable

Ø Purpose: To Ensure Completeness.

Ø Month over month customer Analysis

Ø Reconcile to the sub-ledger.

Ø Examine Accounts Receivable Aging

Step # 3 Reconcile Prepaid Expenses

Ø Prepare Excel file for your prepaid expenses’ recognitions.

Ø Amortize the prepaid expenses at the time of Actual transactions happened or required to booked,

Step # 4 Inventories

Ø Perform month-end reconciliation between books and the warehouse report.

Ø Review for obsoletes and expired Inventories.

Step # 5 PP&E (Property, Plant & Equipment)

Ø Review for large purchase

Ø Run Depreciation

Ø Review for obsolete items for possible write off.

Step # 6 Accounts Payable

Ø Ensure all vendors Invoices are Received and recorded properly.

Ø Reconciliation Trial Balance to Sub ledger

Ø Review AP aging report

Step # 7 Credit Card Reconciliations

Ø Reconcile the balance on the books to the credit card statement.

Ø If possible, reconcile the transactions on monthly basis.

Step # 8 Accrued Expenses

Ø Maintain an Excel file for your Accrued expenses.

Ø Check whether past accruals should be reversed. (If vendor Invoice was received)

Step # 9 Unearned Revenue

Ø Maintain an Excel table showing Breakdown by customer.

Ø Review table on a monthly Basis.

Step # 10 Long Term Debt

Ø Maintain an Excel table showing loans outstanding & reconcile it to lender statement.

Ø Check to see if you need to Accrue the Interest you owe.

Profit & Loss Side

Step # 11 Revenue Accrual

Ø Download revenue by customer. Examine whether adjustments are needed.

Step # 12 Expense Accrual

Ø Review a list of Expense GL Accounts and look for account Types that might require An accrual adjustment.

Step # 13 Review Open Purchase Orders (PO)

Step # 14 Actual Vs. Budget

Step # 15 Period over Period comparison

Step # 16 Lock the period.

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