The financial close process - what goes into monthly financial statements

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Each month, ScaleFactor compiles the financial information flowing into your account from bookkeeping, bill pay, payroll and other key business processes in order to make available financial statements - specifically the Income Statement (or Profit & Loss) and Balance Sheet - upon your request. This process of gathering, adjusting, confirming and reviewing all relevant financial information for a given time period (one month) is known as the financial close.

 

The Financial Close process, or simply Close, takes place after a month ends and extends until your specific close date, which is by default the 20th business day of the following month. Therefore, the close date for July would be the 20th business day of August. Accelerated close dates are available for an additional annual fee.

 

Standard activities that ScaleFactor undertakes as part of Close are reviewing the bookkeeping for correct revenue and expense classification, reconciliation of bank and credit card accounts, update and review of relevant schedules and sub-ledgers, journal entries and overall financial statement presentation review.

 

Financial Close is a team sport and often *requires information or documentation from the business owner or operator. When ScaleFactor is unsure of the details around certain transactions, Transaction Cards will populate in your Home feed grouped by month. These requests are always in the interest of proper classification of transactions and typically have bottom line or tax impacts. Often, Documentation will be requested in order to gain important details around transactions or events that took place in the month. A loan document is a common example of what may be requested. This is important in order to ascertain the terms of the loan, which impact how interest, principal and other items are calculated and presented.

 

*Note: Until ScaleFactor receives important information that has been requested from the business, there could be delays in the delivery of requested financial statements.

 

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