A disciplined monthly close turns audit season and tax filing from a scramble into a formality — here's a practical checklist to work through each month.
1. Reconcile All Bank Accounts
Match every account against its statement before moving to the next step — nothing downstream is reliable if cash isn't reconciled first.
2. Review Accounts Receivable & Payable
Chase overdue receivables, confirm payables are accurately recorded, and flag anything aging beyond your normal terms.
3. Post Accruals & Prepayments
Record expenses incurred but not yet invoiced, and revenue earned but not yet billed, so the month's numbers reflect actual activity, not just cash movement.
4. Update Fixed Asset Register & Depreciation
Post the month's depreciation and record any additions or disposals.
5. Reconcile VAT Output/Input
Confirm VAT collected and VAT paid on purchases match your filing for the month, catching discrepancies before your VAT return is due.
6. Review TDS Deducted & Deposited
Confirm all TDS obligations for the month are calculated and filed within the 25-day deadline.
7. Generate Management Reports
Produce a profit & loss and balance sheet snapshot for the month — even informally, this is what turns bookkeeping into actual decision-making information.
Want this process running reliably without adding to your own workload? Company Sathi manages monthly close for businesses across Nepal.
