Closing the Month? Don’t struggle make a plan, follow the plan.
1. Verify all transactions for the working month have been posted to the General Ledger.
Deal Recaps all posted
Fixed ops invoices are posted
Cashier tickets posted
Vendor Invoices posted
Check run payments printed and posted
Bank Deposits posted
2. Review all you Schedules have been reconciled/matched to expected payments.
Have expected holdback amounts been received and posted
Have CIT been received & posted
Have FP paid & posted
Have Factory Statements posted
Have sales & payroll taxes been paid and posted
3. Review your trial balances for exceptions or corrections.
A glance over the balances to look for any unexepected items or larges balances
4. Adjusting entries to reclassify misplaced or dirty schedule balances
5. Preliminary reports
Print a financial statement for review by your Dealer Principal or CFO
If errors found, review and correct.
Reprint financial statement again
6. Upon approval of your financial statement, it is time to print, file, then submit your financial statement to any banks, franchise manufacturer, accountants or agencies for which you are obligated.
7 Close the Month.
Click That Button.
That’s it you’re done. You say there’s more to it than that? Then add it to your list, or reach out to us if you need to dig in and get it figured out.
Great Question Brandon! I've always said "If you can consistently close late, You can consistently close on time." The key to this sentiment is treat every day as if you are getting ready to close the month. Assure that you post and review all transactions and schedules each day, but at a bare minimum, each week. This way by the end of the month you know whether it is you or others holding up your month end. I had one office manager who could not close the months on time because she would hold all the problem deals until the end of month. The reason? She didn't want to chase sales man around to have them completed every time. the solution? Give the deals to the General manager or Sales Manager. It not your job to fix salesman errors, and in fact, if you did you could be held liable.
What are some tips for getting the month closed earlier? I'm constantly struggling to get it done by the last day of the next month when other dealerships are done the first few of the next month.