Page 253 - Accounting Best Practices

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Exhibit 12.4 Sample Closing Schedule Financial Statements Best Practices
• Four days prior to period-end
1. Revise the closing schedule and distribute to staff.
2. Verify that recurring journal entries are still correct for the current reporting
period.
3. Review financial statements with the most recent information and investigate any
unusual variances.
• Two days prior to period-end
1. Review the contract schedule and verify that all contractual agreements have
been either paid out to suppliers or billed to customers.
2. Complete all allocation bases.
3. Review financial statements with the most recent information and investigate any
unusual variances.
• One day prior to period-end
1. Conduct an audit of the inventory to determine the accuracy level.
2. Complete footnotes.
3. Review financial statements with the most recent information and investigate any
unusual variances.
4. Go on-line with the bank and complete a preliminary bank reconciliation.
• Day of period-end
1. Process the period-end closing program in the computer.
2. Print all period-end reports.
• First day after period-end
1. Compare all period-end reports to general ledger balances and reconcile differ-
ences.
2. Accrue for unpaid payroll.
3. Close the accounts receivable module.
• Second day after period-end
1. Review cutoff information and accrue for any missing supplier invoices.
2. Close the accounts payable module.
3. Update the fixed assets schedule and calculate depreciation.
4. Complete all remaining accruals.
• Third day after period-end
1. Update detailed schedules for all balance sheet accounts.
(continues)