1. Reconcile all bank accounts:
Ensure that your bank statements match your accounting records by comparing transactions, including deposits and withdrawals, and resolving any discrepancies.
2. Review and reconcile accounts receivable:
Verify that the amounts owed to your company by customers are accurate and up to date, and address any discrepancies promptly.
3. Verify accounts payable balances:
Confirm that your outstanding bills and obligations are accurately recorded, and make any necessary adjustments.
4. Confirm the accuracy of inventory records:
Conduct a physical inventory count and reconcile it with your accounting records to ensure accurate valuation and reporting.
5. Check for outstanding payroll liabilities:
Ensure that all payroll taxes and other obligations related to employee compensation are accurately recorded and paid.
6. Review and adjust prepaid expenses:
Examine prepaid expenses like insurance premiums or rent payments to ensure they are properly recorded and allocated over time.
7. Accrue for any outstanding expenses:
Estimate and record any expenses that have been incurred but not yet billed or paid to avoid understating your liabilities.
8. Record depreciation and amortization:
Account for the depreciation of tangible assets and the amortization of intangible assets, spreading their costs over their useful lives.
9. Conduct a thorough audit of fixed assets:
Verify the existence, condition, and value of your company's fixed assets, such as property, equipment, and vehicles.
10. Prepare financial statements:
Generate accurate financial statements, including income statements, balance sheets, and cash flow statements, to provide a clear snapshot of your company's financial health.
