A month-end checklist for the books
Work through the same checks every month, in the same order, and deal properly with any figure that does not agree.
Task 1The same list, every month3 questions
Month end is when the books are checked before anyone relies on them. Priya works through the same list each month, in the same order.
- Enter and post everything for the month: day books, cash book, petty cash and payroll journals
- Reconcile the bank
- Reconcile the sales and purchases ledger control accounts
- Check the VAT control account and the wages control account
- Count the petty cash
- Draw up a trial balance and look for anything unusual
- Have someone else review and sign the reconciliations
Posting comes first. A reconciliation done on half-posted books shows differences that are not real.
Task 2The checks at 30 June4 questions
Task 3What to do with a difference2 questions