Accounting Monthly Checklist

The items below should be completed by our accounting department on a monthly basis. Please return this
checklist with evidence of completion on the day your Report to Stockholders will be presented. Your actions will
affect the entire company and there for this will be a grade for everyone in this company. Please pay attention to
detail. Completing this checklist thoroughly will only make your end of the year easier. This information needs to
presented monthly by the Controller; however, all accounting employees should play a role in compiling this
information. Failure to do so should be reflected in your evaluation.

(Check if completed)
_____ Payroll completed on time including form 941
_____ Proof or required monthly payments made (rent, insurance, loan, etc…)
_____ Updated financial statements (Income Statement, Balance Sheet, Budget (1 st & 10th mo. Only))
_____ Required inventory purchased
_____ All sales processed
_____ Report to Stockholders/Board of Directors (Beginning in October) including the following
✔ Provide investors with an overview of the firm’s financial performance during the period covered.
Use graphs to illustrate changes in performance from period to period.
✔ Include and explain major statistics and figures such as sales, net income, profit margin, and
company profitability.
✔ Financial statements comparing projected to actual numbers, show percent change and explain
significant differences.
▪ Income Statement
▪ Balance Sheet
▪ Cash Budget
✔ Ratio Analysis:
▪ Current Ratio: Measures the ability of a business to pay its bills in the near-term. (Current
Assets/Current Liabilities)
▪ Quick Ratio: Measures whether a business has sufficient assets that can be converted into
cash to pay its bills now, in the short-term.((Current Assets – Inventory)/Current
Liabilities)
▪ Gross Profit Margin Ratio: Indicates the percent gross profit is of sales. A low percentage
most likely indicates a high Cost of Merchandise Sold. (Gross Profit / Sales)
▪ Net Profit Margin Ratio: Indicates the percent net profit is of sales. A low percentage
most likely indicates high costs. (Net Profit/Sales)
▪ Debt to Asset Ratio: Indicates the proportion of a company’s assets that are being
financed with debt, rather than equity. A low ratio indicates that assets are being funded
with equity and not assets. A high ratio, greater than 1, indicates that assets are being
funded with debt and may be putting itself at risk of not being able to pay back its debt.
(Total Liabilities/Total Assets)
✔ Explanations of any “Other” balances if necessary
✔ Interpret the financial data