How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Megan C Your Own Question
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16544
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
23669918
Type Your Finance Question Here...
Megan C is online now
A new question is answered every 9 seconds

When is the best time to close an accounting period? End of

This answer was rated:

When is the best time to close an accounting period? End of month? 5 days after month end? 10 days?

I'm asking this question because the company records I'm attempting to straighten out have never had periods closed. So if an invoice is added to Accounts Payable in October, but the invoice date was from July, the bookkeeper has historically booked it in the G/L period as of the invoice date. This has the effect of making any monthly reports obsolete.
What should I do about this going forward?

Megan C :

Thanks for your question, and thanks for using JustAnswer.com

Megan C :

Thanks for asking for me directly

Megan C :

You should close an accounting period on the last day of the month. Then, use the couple days after the closing day to make your required closing and adjustment entries.

Megan C :

You should make it so that once a period is closed, you cannot make entries to it. This will force them to enter the invoice in the month they receive them.

Megan C :

They should be adding invoices to accounts payable as they get them.

Customer:

Thank you. It will be hard teaching an old dog new tricks, but unless this is done, any reports are meaningless. Should I go back into the G/L and adjust the posting periods for the year so far? Or does that just create unnecessary work? Should I just make the change at the end of this month and going forward?

Megan C :

I would just start the change now, going forward. What's done is done.

Customer:

Thank you, XXXXX XXXXX a great day!

Megan C :

You too!

Megan C :

Please don't forget to rate my response as "excellent" so that I may receive credit for assisting you today

Megan C and other Finance Specialists are ready to help you
Thanks, Terri for your positive rating. Please come back and visit me for any of your tax, finance, or social security needs. It was a pleasure working with you today