It is coming up to the end of another month, is your accounting ready for that? Many business owners are not sure if they are prepared for the end of the month as they only look at the P&L and balance sheet. But, do you know that they can be incorrect?
What should you look for at the end of the month?
💰 First, you should have a budget that you can compare to your actuals. If there are categories that are way off from budget, it is time to take a closer look at those. The fastest way to double check them would be to have a tie out report.
💰 What is a tie out report??? I am glad you asked 😁. A tie out report takes all your different accounts and compares them to the balance sheet or P&L. This way there is a detailed account of how the numbers came about. This is a report that your accounting team should be able to create.
💰 What else should you look at for the end of the month? You should be double checking all your receivables (know who owes you money!) and payables (know where your money will be going).
💰 Lastly, you should be checking your 90 cash forecast. This will give you a clear picture on what you will need to collect, and where that money will be going. This is a great way to plan your business accordingly. Without a road map, how can you get to your destination?
If these things are not in your month end package, we at Knapp Financials would love to help you out. We like to bring a white glove accounting service to your business. 😁