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Accounting and bookkeepingBusiness transformation
Closing the books in five working days: how small finance teams do it
Monthly accounts are only useful if they arrive while the month still matters. A simple routine gets most businesses to a clean close in a working week.
Accounts that arrive six weeks after the month are history. Accounts that arrive in five days are a management tool. The difference is rarely more people; it is a routine, done the same way every month.
Five days
- Day 1Bank and card accounts reconciled; sales invoices complete.
- Day 2Supplier invoices in; accruals for costs not yet billed.
- Day 3Payroll, prepayments, depreciation and stock adjustments posted.
- Day 4Balance sheet reviewed: every control account agreed.
- Day 5Pack issued, with a short commentary on what changed and why.
What makes it possible
- Bank feeds and receipt capture, so transactions are coded as they happen.
- A cut-off date for suppliers and staff to submit invoices and expenses.
- Standard journals for recurring items, ready to post.
- A checklist with a named person against every line.
Do not chase perfection. An accrual based on a sensible estimate is better than a late close waiting for one invoice. Fix the estimate next month if it was wrong.
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This insight is general information, not advice for your circumstances. Talk to us before acting on it.