What is a month end?

A month end is the closedown of a trading month. A month is closed when all transactions, invoices, credit notes and payments have been entered for that month and all the reports have been printed out. Different accounts software have their own methods for performing a month end but they perform the same general processes.

When all the transactions have been entered, then all the month end reports can be printed. Many of these reports are printed out and then filed for future reference such as for a vat audit or your accounts year end audit.

The month end routine is the term used to describe the process you do to ensure that all transactions have been entered into your accounts system and that all the necessary reports have been printed out and the system is then ready to process the next months transactions.

What reports do you print out at month end?

Debtors

• List of Sales Invoices, Credit Notes and Journals
• List of customer and non customer receipts
• Vat Analysis Reports
• Aged Debtors Listing
• Customer Statements

Creditors

• List of Purchase invoices, Credit Notes and Journals
• List of supplier and non supplier payments
• Vat analysis reports
• Aged creditors listing

Nominal Ledger

• List of Journals
• Profit & Loss account
• Balance Sheet
• Trial Balance

A bank reconciliation should also be completed each month.

There may be other reports specific to your business such as stock analysis and sales analysis that can be added to your month end routine.

You should type up your own month end routine to ensure that all the necessary tasks are completed in full and correctly each month.

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(c) Nilsson Denver Ltd 2007