The Fast Close, Part 2 (#17)

In this episode, we discuss a number of closing activities that can be completed prior to the end of a reporting period. Doing so can greatly increase the speed with which financial statements are created. The following points are made:

  • Review all expenses to rebill to customers several days in advance, such as travel and entertainment rebillings. Doing so can result in much cleaner billings to customers.

  • Partially complete commission calculations and splits for all sales other than those occurring in the last few days of the reporting period.

  • Review employee hours to be billed out, and clean up any errors found. This task could be done on a weekly basis.

  • Complete financial statement schedules in advance, such as operational reports.

  • Create a separate subdirectory in the computer to store each month’s reports; doing so tends to avoid confusion with using the wrong reports.

  • Conduct a daily online bank reconciliation, so that reconciling items have been dealt with prior to the end of the reporting period.

Related Courses

Closing the Books
The Soft Close
The Year-end Close