Overview
Month-end closing is the routine review that confirms the month is ready for management reports, VAT review, financial statements, and audit follow-up. QBM does not replace company policy, but it gives users the reports and controls needed to close with confidence.
Important: Do not close or lock a month until invoices, receipts, bills, bank activity, inventory, payroll, and tax have been reviewed by the responsible users.
Before You Start
- Confirm all users finished entry for the month.
- Create a database backup before major corrections or closing activity.
- Confirm the reporting date range is the correct month.
- Review user permissions for posting, editing, deleting, and closing.
Operational Checks
| Area | Check |
|---|---|
| Sales | Review invoices, sales receipts, credit memos, refunds, open orders, delivery notes, and customer payments. |
| Purchases | Review purchase invoices, pay bills, vendor credits, received items, and open purchase orders. |
| POS | Close or review POS batches, daily sales reports, cash totals, refunds, and payment methods. |
| Inventory | Review stock adjustments, transfers, physical inventory, negative stock, serials, lots, and cost changes. |
| Payroll | Post payroll entries, review payslips, time entries, and employee-related accruals where used. |
Accounting Checks
- Reconcile bank accounts against bank statements.
- Review undeposited payments and unmatched deposits.
- Review accounts receivable and accounts payable aging.
- Review VAT or tax transactions before filing.
- Run Trial Balance and confirm debit and credit totals match.
- Review Profit and Loss and Balance Sheet for unusual movements.
- Post recurring journals, depreciation, accruals, and adjustments as needed.
Reports To Save
| Report | Why Save It |
|---|---|
| Trial Balance | Confirms account balances at month end. |
| Profit and Loss | Shows monthly income and expenses. |
| Balance Sheet | Confirms assets, liabilities, and equity. |
| A/R and A/P Aging | Supports collection and payable review. |
| Inventory valuation or stock reports | Supports stock control and costing review. |
| VAT or tax reports | Supports tax filing and audit records. |
After Review
- Save the final report package as PDF or Excel based on company policy.
- Restrict changes to non-current transactions if required by management.
- Communicate the closing date to users before the next month begins.
- Keep a backup after closing so the final state can be restored if needed.