I am writing this blog on November 30.  Already one of my clients has a jump on their month end financials.  They will be ready to quickly finish the flash report on December 1.  Just one day after month end and they will already know within reason how the month turned out.  Plus, they will be that much closer to the final close.

How about your company?  Does your accounting department have a jump on the month end? 
Or are they waiting until after the month end to really get going?  Have they done all they can before hand?

I was out at this health service products client on November 29.  I did a review of the numbers to date for the month, particularly focusing on inventory and the related transactions, since that is a particularly key number on their financials that requires some review.  As I mentioned in a prior blog, know the soft area in your financial reporting and hit it hard and early.  I also set up the November flash report (see the Taking a Flash blog) and went through the balance sheet, especially for accrued liabilities.

It is good to have this out of the way.  There were a number of questions and some reclassifications that came up.  Having this done means that much less to do on December 1. 
Questions can be answered that otherwise would hold up the flash or make it less accurate.

Here are a few things to look at to get a jump on your month end:

1.     Inventory and Cost of Sales/Service.  This is a key item for manufacturing and distribution companies; service companies will have the cost of service. 

a.     See that purchases for the month have been matched up. 

b.    Make sure that any finished work in process is closed out.

c.     If you book this throughout the month (versus a month end entry), make sure products or jobs sold or completed have been booked to cost of sales or service.

2.     Accrued Payroll.  Is all payroll in for the month and any payroll accrued?  For some companies where it is not material, it can be accrued ahead.  For service companies, it can be checked for postings to date and be ready to wrap up quickly right after month end.

3.     Revenues.  Are billings up to date?  Are there any additional sources of revenue to accrue?

4.     Accrued Expenses.  These can usually be all accrued before the end of the month, since by now you would have a pretty good idea about them.

5.     Cash.  Has the bank reconciliation been done using online information up to the last couple days of the month?  Are all transactions such as transfers already booked?

6.     Depreciation.  This can be booked ahead of time.

You might have other key things based on your company.  Don’t wait until after the month.  Get a jump on it now.