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| *Ostroff, Fair and Company>>>Corporations |
Why shouldn't you wait until the end of the month to post to the control accounts or the subsidary ledgers |
Why shouldn't you wait until the end of the month to post to the control accounts or the subsidary ledgers There are three main reasons of which I can think you should not wait. The first has to do with the accuracy of your books. If you wait until the end of the month, you cannot have an accurate picture of your financial position except for that one single day on each month. The goal of accounting is not just to record; it is to record accurately. The second has to do with auditing. Your internal auditors cannot be useful to the company if they are constantly facing incomplete records. The internal audit function today can be more valuable than almost any other area of your business. These auditors can find ways to save the company money, suggest more efficient ways to run your company, and reduce the work necessary by your external auditors. Speaking of the external auditors, if your company's auditors like to do interim testing, they are going to have to do extra work if they need to wait for end of the month entries. Save your company money and time by updating these accounts as often as is financially reasonable. The final reason is because problem areas can be identified early, and fraud becomes less likely. Your employees are probably smart enough to know that it is easier to hide fraud when there is one giant entry or a mass of entries made only once a month. |
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