Checklist for Financial statement closing process
FSCP or Financial Statement Closing process refers to the series of tasks that are undertaken by the Finance and Accounts department of a company before the closing of books for a month or year.
The Finance and Accounts team of a company is responsible for setting up the process of book closure which includes the overview and a checklist. This checklist defines the steps to be done at the period end which may be month-end or year-end which is done to record, reconcile, and review accounts information. This not only organizes the accounting but also simplifies the book closing and preparation of financial statements.
Here, we are sharing some of the checkpoints which are included in the process of book closure also known as FSCP:
1. Fixed Assets General ledger reconciliation with Fixed Assets register. Identify the discrepancy and its reasons. If any adjustment required, accounting is done as per the process.
2. Check and review control accounts: At the period end, nothing should be there in control accounts and all the amounts should be transferred into the relevant general ledger.
3. Review of provisions of expenses.
4. Review of Accounts payable, Accounts receivable.
5. Review of petty cash
6. Review of Bank reconciliation performed for the month and reconciling items with Bankbook
7. Review Sales or revenue account
8. Review of the Balance sheet, profit and loss account, and Cash flow statement
9. Review of notes to accounts
10. Impairment of assets
11. Review of investments
12. Review of loans and advances
13. Review of expense accounts
14. Review of tax provisions
15. Review of Inventory