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Monthly close is related to prepare monthly Accounts Report . So need to close all ledger monthly and also need to make all necessary adjustment monthly.
Monthly closing account includes Bank Reconsilation and all other ledger, record all Payable and Receivable transaction, all Accrued transaction or any adjustment entries as per your business requirement. Based on all the transaction can make profitability statement on monthly basis. it's help to know where company stand in financial strenght.
n accounting the monthly close is the processing of transactions, journal entries and financial statements at the end of each month. Under the accrual method of accounting, it is imperative that the financial statements reflect only the transactions and journal entries having relevance to the current month's revenues and expenses, and end-of-the-month assets and liabilities. Expressed another way, the monthly close must achieve a proper cutoff of each month's financial activities.
In accounting the monthly close is the processing of transactions, journal entries and financial statements at the end of each month
CONSOLIDATION OF ALL THE INCOMING AND OUTGOING TRANSACTIONS,EXPENSES AND INCOME FOR SPECIFIC MONTHS. ACCOUNTS USUALLY DO THIS TO DETERMINE THE EXPENSES FOR THE PREVIOUS MONTHS AND TO PROJECT THE EXPENSES THE FOLLOWING MONTHS.
Closure of all entries/transactions pertaining to specific month.
Duly recording of the entries in software and books
Reconcile Bank statement with the software/books ledger of bank(s)
Reconcile Cash in Hand with software/books ledger of Cash
It meens to finalize the a;; accounts on monthly basis. For this porpes make the necessary adjustment entries on monthly basis. Reconcile the all accounts ( Bank Statements and Cash ledgers also) Take Stock updation by phisicaly checking and up date stock reports.
Every organization objective is to know the financial health
so for that purpose they have to prepare the acquirate financial statement for each and every month
Monthly Close means all the Sales/Purchase/Expenses/Provision/ stock valuation/ Bank reconciliation for a particular month is recorded in the books of accounts so as to prepare the financial statement of the company for that particular month.
