What is a month end close process?
The month end close process involves recording, reconciling, and reviewing all business transactions and finalizing the account data for the month.
Here is the information you need for your monthly closing process:
- Bank statements, including credit card and loan statements
- Income and expenses
- Accounts receivable and accounts payable
- Fixed assets
- Accruals and prepayments
- General ledger
- Financial statements
Make sure to capture all financial data for the month.
Your month-end workflows will depend on the accounting basis you use:
- Cash basis accounting: recognizing income and expenses when you receive or pay cash
- Accrual basis accounting: recognizing income and expenses when you incur them
With cash basis accounting, you won’t have balance sheet accounts, such as accounts receivables and accounts payables. To learn more, see our guide on Cash Basis Accounting vs. Accrual Accounting.