Phase four of the QuickBooks data conversion process is the firest monthly close. We take phase four to reconcile all balance sheet balances and review financials together. This process includes determining any additional monthly reports needed or additional data that needs or wants to be tracked.
n order to do a monthly close in QuickBooks, we require supporting documents for any balance on the balance sheet. For the bank accounts this would be the reconciliation reports and bank statement. For a credit card account this would be the reconciliation report and the CC statement. It is the other sub-ledger reports that get a little more difficult. For a customer deposit account, as an example, we reconcile the account to zero ending balance every month. What that allows us to do is check of the deposits that have been cleared or invoiced out. Then what remains in the reconciliation are only the open customer deposits.
Another thing we will do in the close is review trend reports to be sure that the current month is staying within the trend of previous periods. This allows us to confirm the setup of QuickBooks ties well with the data we have imported. Now you are off and running on your own!