To ensure accuracy and reduce the risk of fraud, it is a best practice to have someone with greater knowledge of accounting principles review the documentation supporting the month end close along with the prepared financial statements. This can be the administrator/manager if the clinic has a bookkeeper role or it may be an outside accountant with this as a narrow-scoped service.
“If all goes well, the close is a routine process that does not attract much attention from management or business owners. But it’s a completely different story if the numbers are late—or wrong”, American Institute of Certified Public Accountants.
Administrator or designee should set up a month-end close process, to include a review. An in depth review of this process can be found at Patriot Accounting’s website. The following is a possible outline or checklist for the process.
1. Record incoming cash
2. Update accounts payable
3. Reconcile accounts
4. Review petty cash
5. Look at fixed assets
6. Count inventory
7. Organize and review financial statements
8. Check revenue and expense accounts
9. Review information before closing
10. Prepare for next month
