Engagement
Period close
We arrange the period close as a sequence. A month is one kind of period, so a month-end close is one form of this work. Each step has an owner and a due date, and each step produces a reconciliation or a schedule.
What slows a close
A close falls behind when reconciliations are late, when nobody has listed the open items, or when one step waits on a single person. The books can be correct while the close still misses its date.
What the company receives
The company receives a calendar. We tie bank accounts, credit cards, receivables, and payables to source documents. Managers and the outside CPA can read the schedules, and the calendar states the date on which the period closes.
The first close
Your staff complete the next close from that calendar. We remain through that close, so the staff follow the process instead of filing it away.
The calendar is written so the following period can use the same sequence. Each reconciliation names its source document, and each open item is listed on the schedule a manager or the outside CPA will read. The date on which the period closes is stated on the calendar, whether that period is a month or another cycle.
Questions
- Do you close the books every period?
- No. We build the close with your staff, and we stay for the first close they complete. After that close, your staff take responsibility for the calendar.
- What if the reconciliations are behind?
- We include those accounts. We tie each account to a source document, and we list the open items instead of leaving them in someone's notes.
- How is this different from a close checklist?
- A checklist only names the tasks. We also name the owner, the due date, the reconciliation or schedule, and the point at which the period closes.
- Is a month-end close included?
- Yes. A month is one kind of period, so a month-end close is one form of the period close.
- How does an engagement start?
- We start from the close the company is running now. We list the reconciliations, the open items, and the steps that wait on one person.
- How long does it last?
- We stay through the first close the staff complete on the new calendar. After that close, the staff take responsibility for it. The agreement states the end date.
- How does this fit the accounting system the company already has?
- The calendar is built from that ledger. Bank accounts, credit cards, receivables, and payables are tied to source documents from the company's current ledger.