Maintaining offices in Suisun City and Oakland, California, Keith Towns guides the Emerge Financial Group and emphasizes a client focused approach. Experienced in small business consulting, Keith Towns assists with various elements of operations, such as setting in place financial accounting policies and completing a timely month-end close.
A monthly close involves an accurate recording and reconciliation of the full range of transactions that took place throughout the month. This provides information that can be compiled throughout the year in a way that generates financial statements that reflect the overall health and results of the company.
Setting up an effective system starts by choosing a date that is consistent from month to month. Review all balance sheet changes and double check the cash amounts of transactions to make sure they match bank statements. Carefully assess accounts payable and receivable against invoices, and check debt balances against payments over the period being examined.
With this accomplished, attention is turned to expenses, with a focus on ensuring that they are properly categorized. The primary categories include prepaid expenses, such as rent, material, legal, and overhead, as well as those tied to specific recorded sales. Additionally, there are benefits accruals and payroll to consider. Once these are in place, make adjustments through reconciling projected revenues with actual expenses accrued so that accounting entries balance.
