Objective
This guide will help you prepare a comprehensive checklist for the end of the month (EOM) financial processes, ensuring that all transactions are cleared and reconciled for accurate and efficient EOM reporting.
In this Article, You Will Learn How to:
Clear all transactions in the bank feed for the month.
Manage cashbook receipts and payments.
Disburse any undisbursed reservations.
Ensure holds are properly added or released on properties.
Recoup charges from owners or add holds for anticipated charges.
Balance the three-way reconciliation.
Step 1: Clear All Transactions in Bank Feed
Ensure all transactions in the bank feed for the month are cleared. For example, if you are preparing for June's EOM, clear all June transactions.
Review each transaction to confirm accuracy and ensure there are no pending items.
Relevant Help Content:
How do I clear transactions on my Bank Feed?
Step 2: Manage Cashbook Receipts and Payments
Clear all cashbook receipts and payments for the EOM month.
If you have added receipts anticipating money but haven't received it in June and it looks unlikely to be received in the upcoming month, reverse the transaction.
Note: It is advisable to add receipts and payments only when money credits or debits the trust to avoid any uncleared cashbook receipts and payments.
After the EOM is rolled over, all cashbook receipts and payments added before that are locked.
Relevant Help Content:
How to Check if There Are Any Uncleared Cashbook Receipts and Payments?
Step 3: Clear Undisbursed Reservations
Navigate to the Trust > Reconciliation > Undisbursed Reservation.
Clear all undisbursed reservations to ensure that no funds are left unallocated.
Relevant Help Content:
How to Disburse All Undisbursed Reservations in Property Stack?
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Step 4: Add Owner, Contractor and Business Bank Details for Payouts
Ensure that you have added the bank details for owners or contractors and your own business bank details for payouts.
Verify that the details are correct to avoid any delays or issues with the payouts.
Relevant Help Content:
Step 5: Ensure Holds are Added or Released
Check that holds are properly added or released on properties as required.
This step ensures that property accounts are up to date and reflect the current status of any holds.
Relevant Help Content:
How to Add a Hold on Funds for a Specific Property in Property Stack?
Step 6: Recoup Charges or Add Holds for Anticipated Charges
Ensure that you have either recouped charges from owners or added holds if you anticipate any immediate charges to the owner's account after EOM.
This helps in maintaining accurate financial records and prepares the account for any expected charges.
Step 7: Balance the Three-Way Reconciliation
Ensure that the three-way reconciliation is balanced.
This includes verifying that the bank statement, trust ledger, and trial balance all match.
Relevant Help Content:
Your Three-Way Balance Explained
How to see what is in each of your three way points?
Example Uses of the Above:
Ensuring accurate financial records for auditing purposes.
Ensuring smooth EOM process.
Preventing discrepancies and errors in financial reporting.
Conclusion
By following these steps, you can ensure that all transactions are cleared and reconciled, cashbook receipts and payments are managed, holds are appropriately handled, and the three-way reconciliation is balanced. This comprehensive checklist will help you achieve accurate and efficient EOM reporting, providing a clear financial picture at the end of each month.