Month End Close Checklist in Xoro

As we approach the end of June, it's crucial for businesses to ensure a smooth year-end closing process. Have you ever experienced discrepancies in your financial records when reviewing previous year's data? Perhaps it's time to consider implementing a structured month-end close checklist to avoid such discrepancies in the future.

The month-end close checklist is a simple yet effective tool that outlines essential tasks to be completed before finalizing the financial records for the month. To help you navigate this process seamlessly, here's a comprehensive 10-step month-end close checklist that can be tailored to suit your business needs:

10 Step Month End Close Checklist

1. Enter all vendor bills: Make sure all vendor bills for the month are entered in Xoro. You will need to convert the IR (Item Receipts) into Bills for the Inventory Items. Make sure that the Prepayments/Vendor Credits are applied to the corresponding Vendor Bills.

2. Reconcile vendor statements: Reconcile each vendor’s statement to the corresponding accounts payable balance in Xoro. Run the Accounts payable reports with or without prepayments by Due date or invoice date and make sure that the balances match.

3. Enter all customer invoices: Make sure all customer invoices for the month are in Xoro.

4. Enter all customer payments: Make sure all customer payments for the month are in Xoro. Make sure all the Customer Deposits and Credits are applied to the Invoices.

5. Reconcile bank accounts: Reconcile all bank accounts (including credit card, checking, and savings accounts) in Xoro.

6. Reconcile inventory: Reconcile your inventory asset account in Xoro. Make sure the ending balances match with your warehouse inventory count. If you are dealing with the 3PL, make sure the ending inventory balances match in Xoro and in 3PL.

7. Other reconciliations: Reconcile any other asset or liability accounts you are tracking (e.g. Prepaid expenses, Accrued expenses, Deferred rent, etc.).

8. Run financials: Run your financial statements: Profit and Loss Statement, Balance Sheet, and Statement of Cash Flows (if you are using accrual accounting); and any other reports for the period. Verify that the numbers appear reasonable (including trends, balances, and so forth). Make any changes as necessary.

9. Close the period: Lock/Close the period in Xoro. Do not skip this step. It means no more transactions (like vendor bills, customer invoices, etc.) can accidentally be posted to the closed period without at least some sort of warning. Go to Accounting Periods, Select the period, and lock/close.

10. Distribute financials: Distribute the financial statements to the relevant stakeholders..