Question

What do you think the monthly close process looks like in the real world? How do you think accounting teams work with each other, their internal business partners, and external customers and vendors to complete the monthly close?

Answer 1

Month End process in real world starts with the ledger balances.During the month Clerks has put in the transaction entries into the system and At the end of month accounting software has generated a Trail balance which we can call unadjusted trail balance.

For the purpose of reporting to management and other stakeholders we need to close our ledger and trail balance as per method which company is following for the purpose of accounting.

It is a very complex process because accounts teams has to close,adjust,consolidate and reconcile accounts for this type of work there should be good coordination in accounts department

For the consolidation of accounts they will be needing a information from Internal business partners .

They need a proper information from external customers and vendors so that they can adjust their accounts with respect to GAAP principal.

It is a very chaos evnviorment for the account department during the month but it can be normalize with proper team work and good internal and external communication.