THE STARTING POINT
A useful monthly close connects the ledger to bank statements and supporting documents, separates owner movements and identifies unresolved questions. It should leave a file another qualified professional can understand without rebuilding the year.
Define the handover before choosing the software
Accounting software can hold the data, but someone must decide what a complete monthly file looks like. Agree the documents to provide, the person who checks them and the date on which outstanding questions are escalated.
For a business with several entities, use a separate checklist for each one. Shared ownership is not a reason to mix invoices or leave unexplained transfers between companies.
Run five checks each month
- Reconcile cash. Compare each bank and payment account with the ledger. List differences rather than forcing the totals to agree.
- Connect evidence. Link sales and expenses to the relevant invoices, contracts or other support.
- Identify owner movements. Separate capital, loans, reimbursements and distributions for review by the accountant.
- Explain currencies. Apply the agreed accounting treatment consistently and keep the basis used.
- Close the questions. Assign every unexplained item to a person and a date.
This is a working routine, not a substitute for the accounting standards or tax rules applicable to the entity.
Keep a small exception register
| Item | Question | Owner |
|---|---|---|
| Unmatched payment | Which invoice or agreement explains it? | Operations |
| Transfer to founder | What is its documented purpose? | Founder and accountant |
| Intercompany balance | Do both entities record the same transaction? | Finance lead |
| Missing evidence | Who can obtain the document and by when? | Named file owner |
A register should get shorter as the month closes. If the same issue repeats, change the process that creates it instead of adding another year-end clean-up task.
Agree retention and retrieval rules
Retention periods depend on the relevant jurisdiction and type of record. For Singapore companies, IRAS requires relevant records to be kept for at least five years from the applicable Year of Assessment. IRS guidance also explains that records must support reported income and deductions and that retention depends on the underlying event. Use the official sources to establish the rule for your entity.
Decide who can retrieve the documents if a founder leaves, a provider changes or an application is discontinued. Exporting a readable archive is part of a good handover.
End with a usable management view
Ask for a concise view of cash, unpaid invoices, liabilities and unresolved items. Use it to make decisions: whether to follow up a customer, postpone an expense or investigate a margin change.
At year end, the accountant should receive an organised sequence of monthly files and a clear record of significant events. Early organisation reduces the amount of reconstruction required under deadline pressure.
Official sources
Sources checked on 21 September 2026. This guide is educational; ask a qualified adviser to assess the rules that apply to your circumstances.
Explore company formation by jurisdiction
Review the business fit, benefits and obligations for each location.
For companies established through JBM, accounting coordination forms part of ongoing company support. It is not offered as a standalone service.
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