KB20230000/01: Best Practice Processes for general accounting

General Accounting:

• Do not redo manual journals every month, setup recurring journals or import journals.
• Are you running your month-end close processes from memory, or is there a documented process and checklist to follow.
• Different functions need to happen at different intervals. For example. You need to process all deliveries from suppliers and supplier’s invoices before balancing your Stock Valuation report to the Stock Control account in the G/L.
• Ensure all customer receipts are captured and allocated before performing your bank reconciliation.
• Have your salary journals import directly from your payroll system into your accounting system.
• Many processes that are traditionally seen as the last day of the month exercise can be done daily, like bank reconciliations, supplier reconciliations, inter-company loan account reconciliations.
• Make sure all areas have their recon process under control. Agree the following:
  • Stock valuation to the General Ledger stock account
  • Fixed Assets register to the Fixed Asset control account in the General Ledger
  • Bank reconciliation balance to your bank control account
  • Debtors ageing agrees to your debtors control in the General Ledger
  • Creditors ageing agrees to your creditors control in the General Ledger
  • Perform a reconciliation and cleaning exercise of accounts such as the Goods Received Not Invoiced Account (GRNI), Goods Delivered Not Invoiced, Fixed Assets clearing account, IBT accounts, WIP Accounts
  • Total of Input vat agrees to 15% of all your taxable purchases
  • Total of Output vat agrees to 15% of all your taxable sales