Difference between revisions of "Closing out the month"
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# record all checks from checkbook in books | # record all checks from checkbook in books | ||
− | # pay bills, making sure to record not only the payment (which is to an a/p) but the expense as well. | + | # Create and pay bills, making sure to record not only the payment (which is to an a/p) but the expense as well. Create bills before writing checks. |
#* record bills that have been paid automatically (If there have been any staffing changes involving credit card holders, make sure the online payments are still valid.) | #* record bills that have been paid automatically (If there have been any staffing changes involving credit card holders, make sure the online payments are still valid.) | ||
+ | #* Entering everything in payables@freegeek.org maillist should catch nearly everything here. | ||
#::PGE | #::PGE | ||
#::NW Natural | #::NW Natural | ||
Line 15: | Line 16: | ||
#::* Note: There are 4 separate water accounts and changing the credit card requires changing each of those accounts separately. | #::* Note: There are 4 separate water accounts and changing the credit card requires changing each of those accounts separately. | ||
#::Kaiser | #::Kaiser | ||
− | #:: | + | #::GNSA |
#::... | #::... | ||
− | #*Bills that need to be manually paid online | + | #* Bills that need to be manually paid online |
+ | #* These should only happen if there has been a mistake somewhere, or a change in credit cards or bank accounts. | ||
#::... | #::... | ||
#* write and mail checks for bills that need manual payment | #* write and mail checks for bills that need manual payment | ||
− | #::Integra | + | #:: Integra |
− | #::Central Electronic Alarm (quarterly) | + | #:: Central Electronic Alarm (quarterly) |
+ | #:: Aflac | ||
+ | #:: Calvert | ||
+ | #:: CWA | ||
#::... | #::... | ||
#* (get authorization from appropriate committee if bill is at all questionable) | #* (get authorization from appropriate committee if bill is at all questionable) | ||
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#** remember that certain employees get holiday pay so if the pp includes a holiday that category will need to be split differently. | #** remember that certain employees get holiday pay so if the pp includes a holiday that category will need to be split differently. | ||
#** divide payroll tax expense as well. If the staff categories have different ratios of work days, then create a new ratio from the total payroll expense and use that. | #** divide payroll tax expense as well. If the staff categories have different ratios of work days, then create a new ratio from the total payroll expense and use that. | ||
− | # | + | # Retirement (Calvert) |
#* Prepare spreadsheet, compare calculated numbers against actual withholdings | #* Prepare spreadsheet, compare calculated numbers against actual withholdings | ||
# record receipts | # record receipts |
Latest revision as of 18:55, 13 December 2013
These are checklists of things that need to be done before the month is closed out for bookkeeping. By completing all the items on this list, we ensure a more accurate picture of actual income and expenditures -- useful when setting the budget. Sometimes transaction details that occur during a given month aren't known until a few weeks later, but in general transactions should be recorded as close as possible to the date of the transaction. When the amount is not expected to be known for a while, it may be necessary to enter a reasonable estimate in a timely manner, rather than wait for the details to settle.
Basics of catching up on the books
Target: Done by the 12th day of the month.
- record all checks from checkbook in books
- Create and pay bills, making sure to record not only the payment (which is to an a/p) but the expense as well. Create bills before writing checks.
- record bills that have been paid automatically (If there have been any staffing changes involving credit card holders, make sure the online payments are still valid.)
- Entering everything in payables@freegeek.org maillist should catch nearly everything here.
- PGE
- NW Natural
- Rackspace (cc)
- Waste Connections
- Comcast
- Portland Water (EFT - main checking) (quarterly - 3 6 9 12 )
- Note: There are 4 separate water accounts and changing the credit card requires changing each of those accounts separately.
- Kaiser
- GNSA
- ...
- Bills that need to be manually paid online
- These should only happen if there has been a mistake somewhere, or a change in credit cards or bank accounts.
- ...
- write and mail checks for bills that need manual payment
- Integra
- Central Electronic Alarm (quarterly)
- Aflac
- Calvert
- CWA
- ...
- (get authorization from appropriate committee if bill is at all questionable)
- pay rent
- record payroll transactions
- net pay, etc.
- tax withholding
- oddball deductions, such as advance paybacks, etc.
- divide the expenses between months for pay periods that straddle two months
- divide by the number of work days on each side (this is not exact but is close and good enough for our purposes)
- remember that certain employees get holiday pay so if the pp includes a holiday that category will need to be split differently.
- divide payroll tax expense as well. If the staff categories have different ratios of work days, then create a new ratio from the total payroll expense and use that.
- Retirement (Calvert)
- Prepare spreadsheet, compare calculated numbers against actual withholdings
- record receipts
- credit card
- reimbursements
- record daily income reports
- credit and debit card transactions for front desk and thrift store
- "till total" amounts for front desk and thrift store
- daily transfers for front desk and thrift store (from end of shift forms)
- miscellaneous transactions (reimbursements, IOUs, money receipts)
- corrections (overages and short tills)
- Invoiced donations
- record deposits
- record online account transactions
- Make sure most recent transactions have been downloaded to .iif and imported
- create monthly spreadsheet and sort
- transfer from "Paypal Other Income" to proper accounts (general journal)
- check A/R accounts
- recycling vendors (i.e. Bear, Greenwall)
- NCER
- Metro Metals
- Hallmark
- Schnitzer
- Wireless Alliance
- Total Reclaim
- recycling vendors (i.e. Bear, Greenwall)
- check A/P accounts
- recycling vendors
- Ecolights
- recycling vendors
- reconcile bank accounts
- ebay transfer
- donations transfer
- savings (operating reserve)
- First Tech payroll
- restricted
- Capital Pacific
- Capital Pacific Holding
- reconcile line of credit
- reconcile cash box
- Invoiced donations
- Make sure all donations in the database are in the books.
- Make sure insurances and depreciation are entered as monthly values.
- In QuickBooks run "Reports>Company & Financial>Profit & Loss Unclassified" for the month in question
- The report should be all zeroes.
Adjusting Entries
- Reversing income entries
- In the event that we estimated an income amount in a previous month (for example a recycling shipment with an estimated number) it is possible that the amount has been settled on. We will need to enter a transaction dated the first of the new month to undo the estimate and with it the actual amount. The difference should be (relatively) minor.
- Estimating expense entries
- In the event that an expense amount is forthcoming that will affect the previous month (for example a payroll expense for a two week period that will occur in a few days from the start of the new month) the amount affecting the earlier month should be estimated and entered. When the amounts are known, we will need to enter a transaction to undo the estimate and with it the actual amount. The difference should be (relatively) minor.
End of the Month Review Process
Target: Done by the 15th day of the month.
- Check all prepaid expenses (Asset account, Other Assets)
- Enter the monthly amount to expense
- (typically insurance paid ahead of time). Expenses should be 1/12 of the annual amount.
- Check all accumulated depreciation (Contra-asset account)
- Enter the monthly amount to expense
- (typically fixed operating assets paid ahead of time). Expenses should be based on the expected life of the asset.
Review Miscellaneous accounts for transactions that should be re-classified.
Also, search for transactions over $1,000 and determine if they should have been capitalized.
Check online accounts (PayPal, etc.) and initiate transfers to bank accounts. Make a note to follow up and sweep receiving bank account into main bank account in a few days.
Check all bank account balances and initiate transfers to maintain proper balances.
Look for transactions with future dates.
Reports
Target: Done by the 20th day of the month.
- (A) Balance sheet / Statement of Financial Position for end of previous month (before the month just completed)
- (B) Income statement / Statement of Activities for the new month
- (C) Balance sheet / Statement of Financial Position for end of the new month (the month just completed)
(C) from one month should always match (A) from the subsequent month.