Month-End Processes

At the end of each month, we recommend completing the following processes to support your accounting and processes and preparation for year-end.

We recommend the suggested month-end processes are completed only where they apply for your organisation. For more information, refer to your IRIS Financials administrator.

Before Closing the Accounting Period

Task What must be completed
Review commitments
  • Review unauthorised Purchase Orders and Goods Received Notes (GRNs), and outstanding orders.

  • Cancel or write off any that are no longer needed

Check all transactions have been posted

For required purchase, sales, and other income and expenditure ledgers, check all:

  • Income and outgoings have been entered

  • Posted documents have been allocated

  • Payments have been made or chased

For location specific ledgers, the tasks must be completed for each location's ledger.

Prepare and process payroll
  • Record overtime claims

  • Run and review Payroll reports

  • Create or import a salary journal to the appropriate account, then check against Trial Balance control accounts

  • Process payroll payments

Process VAT 

At the end of the current month or beginning of the next, only reclaimed VAT amounts that have not been received should be in the VAT period.

Journals (Optional) To keep a record of journals posted or changed during the month, run a Document Enquiry.
Close the accounting period

After Closing the Accounting Period

Task What must be completed
Reconcile Balance Sheet

Run a Trial Balance including period 00, save a copy, then check: 

  • All funds and expenditure are accounted for

  • Any amounts that do not appear to be correct

Check all clearing account balances
Reconcile bank accounts
Calculate accruals, prepayments, and deferred income

Calculate and process:

Review cash flow From the Reporting Suite, run the cash flow reports
Check fixed assets
  • For fixed assets posted to the Income and Expenditure account that must be capitalised, post a journal to move them to the required balance sheet nominals

  • Make sure all new assets for each location are in their Fixed Asset ledger

  • Check your Trust and Academy fixed asset register agrees with management account costs, depreciation, and net book values

  • If completed monthly, post depreciation

  • In the Trial Balance, check for incorrectly posted fixed asset values

  • Process asset disposals

  • Obtain any land or building valuations

  • For your auditors, provide property and asset leases in place for the year, with any EFA approvals

Complete a stock take To get the closing stock figure, complete a stock take
Compare actuals against the budget To identify any variances or unexpected values, compare actuals against budget income and expenditure
Check details have been added other incomes

Post details relating to any of the following in the applicable accounts: 

  • Ex-gratia

  • Compensation

  • Gifts

  • Losses

  • Severance payments

  • Heritage assets

  • Indemnities

Review funds

For any funds your organisation have been awarded or raised: 

  • Check reimbursements

  • Post fund payments