What are some Monthly Procedures
Estimated Prepaid Expenses based on premiums paid.
Calculation of Gross Margin to calculate inventory on hand.
Estimate of supplies on hand.
Some expenses not recorded in current month due to period of time required to produce monthly statements.
Usually noallowance made for bad and doubtful accounts, unless an actual loss occurs.
Usually the amortization calculation is the same for each month, unless a major purchase or sale is made.
What are some Year-End Procedures?
A detailedcalculation based on insurance policies with schedules to verify calculations and accuracy.
A detailed count of all company inventory on hand, with allowances for slow moving and obsolete stock on hand.
A detailed count of supplies on hand.
Year-end statements are not finalized for several months, thus allowing allexpenses and revenues to be recorded for the current year.
A detailed review of Accounts Receivable to account for all accounts that may not be collectable.
Detailed schedules accounting for all fixed assets and accurate calculation made for amortization.