Monthly, Quarterly, Half yearly and Annual Financial statement closure
Monthly Financial Statement Closure Checklist
- Check for any errors or discrepancies in revenue and expenses
- Ensure all expenses are properly categorized
- Verify totals match general ledger
- Check that assets and liabilities are correctly reported
- Verify equity section is accurate
- Ensure total assets equal total liabilities and equity
- Compare bank statement balances to general ledger
- Investigate and resolve any discrepancies
- Adjust general ledger as needed
- Ensure cash flow from operating, investing, and financing activities is accurately reported
- Verify beginning and ending cash balances
- Investigate any significant changes
- Provide explanations and additional details for items on financial statements
- Disclose any significant events or transactions
- Ensure notes are clear and comprehensive
- Calculate key financial ratios like liquidity, profitability, and efficiency ratios
- Compare ratios to industry benchmarks or prior periods
- Analyze trends and identify areas for improvement
- Compare actual results to budgeted amounts
- Identify reasons for significant variances
- Develop action plans to address unfavorable variances
- Check aging reports for any overdue or past due accounts
- Investigate reasons for late payments
- Determine if any adjustments or write-offs are necessary
- Verify inventory is valued correctly (e.g. FIFO, LIFO, or weighted average)
- Analyze inventory turnover and obsolescence
- Adjust valuation as needed
- Ensure all fixed assets are properly recorded
- Verify depreciation is accurately calculated
- Update register for any additions or disposals
- Review revenue recognition policies to ensure they align with accounting standards
- Verify that revenue is being recognized appropriately based on the policies
- Analyze the cost of goods sold to ensure accuracy in calculations
- Calculate the gross profit margin to assess profitability
- Review expenses to identify any unexpected or significant changes
- Investigate the reasons behind any fluctuations in expenses
- Review prepaid expenses to ensure they are accurately recorded
- Review accrued liabilities to ensure they are properly accounted for
- Update depreciation schedules based on the useful life of assets
- Ensure that depreciation expenses are accurately recorded
- Verify that intercompany transactions are recorded accurately
- Ensure that any eliminations are done correctly
- Review any significant estimates such as bad debt allowances or inventory obsolescence
- Ensure that estimates are reasonable and based on reliable information
- Review related party transactions to ensure they are properly disclosed
- Ensure that any conflicts of interest are appropriately addressed
- Identify any potential contingent liabilities that may need to be disclosed
- Assess the likelihood of these liabilities occurring and the potential impact on financial statements
- Ensure that financial statements comply with relevant regulatory requirements
- Verify that accounting standards such as GAAP or IFRS are followed
Quarterly Financial Statement Closure Checklist
- Schedule inventory count with relevant departments
- Ensure all inventory is accounted for accurately
- Investigate any discrepancies and make necessary adjustments
- Gather intercompany transaction documents
- Ensure all transactions are properly recorded and eliminated
- Investigate any discrepancies and resolve them
- Collect debt covenant agreements
- Compare actual performance with covenant requirements
- Take necessary actions to comply with covenants
- Gather tax documents and financial data
- Calculate income tax provision based on current tax laws
- Review for accuracy and compliance
- Analyze accrual and prepayment schedules
- Ensure proper accounting treatment and accuracy
- Make adjustments as needed
- Identify potential contingent liabilities
- Assess likelihood and potential impact
- Disclose in financial statements if necessary
- Collect foreign exchange transaction records
- Calculate gains and losses due to exchange rate fluctuations
- Review for accuracy and compliance
- Analyze revenue recognition policies and procedures
- Ensure revenue is recognized in accordance with GAAP
- Make adjustments as needed
- Analyze cost of goods sold accounts
- Ensure proper allocation of costs and accuracy
- Investigate any variances and make adjustments
- Analyze operating expense accounts
- Ensure expenses are properly classified and accurate
- Investigate any unusual expenses and make adjustments
Half Yearly Financial Statement Closure Checklist
- Check for any impairment in value
- Ensure proper classification on balance sheet
- Verify accuracy of accruals
- Confirm compliance with regulations
- Assess adequacy of funding levels
- Review any changes in plan assets
- Validate valuation methods
- Confirm proper disclosure in financial statements
- Perform impairment test
- Document rationale for any impairment charges
- Check for any impairment indicators
- Verify carrying amount is appropriate
- Ensure compliance with lease accounting standards
- Review lease terms and payments
- Verify proper capitalization of expenses
- Assess impact on financial statements
- Confirm expenses are properly recorded
- Assess impact on financial performance
- Verify effectiveness of hedging strategies
- Assess impact on financial results
Use in Manifestly