The Month End Close Process

Posted by James Hutchinson May 18, 2009

Much of the attention in the accounting profession is focused on public accounting, which is responsible for auditing financial statements and producing audit reports.

However, I suspect that most of the accountants are engaged in financial or management accounting, who prepare the monthly financial statements presented management long before they audited by outsiders.

These accountants design the spreadsheets and book the journal entries so management can see what the profitability of the company is, and so that the auditors have something to audit.

Month End Again?

Most companies issue financial statements monthly, so that these accountants have a routine. The last few days of the month involve getting ready for close, and then the next five to ten days are a furious race to close the books accurately.

The next few weeks are spent working on other projects or preparing reconciliations, and then the process begins all over again.

I knew one accountant that counted the number of month ends to retirement. So, if you desire an unpredictable job, with varied responsibilities, never knowing what is going to face you each day, don’t go into accounting.