Tick each line as it is done and sign the last section. Keep the completed sheet with the month’s working papers.
1. Transactions
- Sales invoices, credit notes, and receipts up to the last day of the month are recorded
- Purchase invoices and expense claims received are recorded, including late arrivals dated in the month
- Goods received but not invoiced, and services received but not billed, are booked
- Bank charges, interest, and direct debits on the statement are recorded
2. Reconciliations
- Every bank account is agreed to the statement, with unreconciled items listed and dated
- Debtors’ and creditors’ control accounts agree to their lists
- Loan balances agree to lender statements
- Cash on hand agrees to a count; petty cash is cleared
- Inventory in the books agrees to stock records and the latest count
3. Adjustments
- Expenses of the month not yet billed are accrued
- Prepaid expenses and advances received are deferred to the months they belong to
- Depreciation is posted from the asset register
- The payroll journal is posted; salary payable and statutory deductions agree to payments
- Provisions for known doubtful balances and claims are made where the policy requires
- Foreign-currency balances are revalued where the policy requires
4. Statutory and tax entries
- GST in the ledgers agrees to the returns for the month
- Tax deducted at source on payments agrees to the amount to be deposited and returned
- The income tax provision is made if the policy is to do so monthly or quarterly
- Due dates for the next month are listed, each with a person responsible
5. Review and lock
- The trial balance agrees; suspense accounts are nil or explained
- Each profit and loss line is compared with the previous month and the budget, and unexplained movements are queried
- Someone other than the preparer has reviewed the reconciliations and journals
- The period is locked in the accounting software
- The management report is released with a note on open items
Prepared by ____________________ Date ____________ Reviewed by ____________________ Date ____________