Free Closing Process Accounting Checklist

Review Trial Balance: Ensure all accounts are properly reconciled and any discrepancies are investigated and resolved before closing.

Adjusting Entries: Verify that all necessary adjusting entries, such as accruals and deferrals, are made to accurately reflect the financial position.

Documentation Review: Confirm all supporting documentation, including invoices, receipts, and bank statements, is organized and readily accessible.

Compliance Check: Assess compliance with relevant accounting standards, regulations, and internal policies to mitigate risks of errors or non-compliance.

Closing Journal Entries: Execute closing entries to transfer temporary account balances to permanent accounts and reset revenue and expense accounts.

Reconciliation: Reconcile all balance sheet accounts, including cash, accounts receivable, and accounts payable, to ensure accuracy and completeness.

Depreciation and Amortization: Update depreciation and amortization schedules to reflect the current period's expenses accurately.

Accrual Reversals: Reverse any accruals made in the previous period that are no longer applicable to the current period to avoid double counting.

Financial Statement Preparation: Prepare financial statements, including the balance sheet, income statement, and cash flow statement, in accordance with reporting standards.

Variance Analysis: Analyze variances between current and prior periods to identify trends, anomalies, and areas for improvement.

Management Reporting: Compile management reports providing insights into financial performance and key metrics to support decision-making.

Disclosure Review: Review disclosures to ensure transparency and compliance with regulatory requirements and disclose any significant events or transactions.