An accounting month is made up of many individual business transactions, documents, payment data and explanations. A fixed monthly rhythm brings this information together into a traceable processing status.
Distributed data deliveries and parallel queries make it difficult to keep track of the current status. Clear phases, responsibilities and status points make every handover tangible.
The monthly process comprises six recurring phases, ranging from data provision to evaluation. Open issues are assigned a responsible person and a set deadline for further processing.
Direct answerThis recurring accounting process combines data provision, completeness checking, continuous processing, bundled clarification, correction and approval, as well as the provision of agreed reporting. Each phase ends with a clearly defined work status.
The process begins with the data for the current processing period. It ends with a transparent booking status, the agreed reports and a handover list for open items. The same rhythm starts again in the following month.
| Phase | Typical input | Accountability | Result status |
|---|---|---|---|
| Data provision | Receipts, bank and cash data, payment information and explanations | Internal data controllers | Data has been received and assigned to a time period |
| 2. Completeness check | Delivery overview and agreed data sources | Internal contact person and accounts processing | Editable stock or documented need for additions |
| 3. Ongoing processing | Verified vouchers and existing business context | Accounting processing | Processed transactions and visible need for clarification |
| 4. Bundled clarification | List of queries with document reference and deadline | Named technical and approval managers | Answers, additions and assigned follow-up tasks |
| 5. Correction and Approval | Added details, corrections and operational decisions | Accounting processing and approval managers | Reconciled booking status for the analysis |
| 6. Evaluation and transition | Agreed booking status and open items | Processing of accounting and recipients of the reports | Reports with data cut-off date and handover list for the following month |
The six phases form an organisational model. The specific timing depends on the business model, data volume, reporting requirements, internal approvals and the deadlines applicable to the company.
The ongoing monthly processing handles the business transactions of the processing period. The functional Month-end close supplements this status with closing activities and valuations resulting from accounting, tax law, or internal reporting rules.
What belongs to the ongoing monthly processingReceipts and payment data are recorded, business transactions are assigned, open queries are documented and corrections are processed. The result is a transparent booking status for the agreed period.
When professional final theses beginAccruals, Provisions, valuation issues and other year-end decisions are based on the current accounting status. The specific processing is carried out according to the responsibilities of the company and its tax advisor.
This separation creates clarity regarding the scope of services. The ongoing processing cycle ensures orderly data and visible processing statuses. Technical final papers build upon this state.
Typical data sources are incoming and outgoing invoices, bank movements, cash register information, payment allocations and explanations of special business transactions. The company and the bookkeeping department jointly determine which information is received on an ongoing basis and which data is to be made available by an agreed deadline.
The technical design follows the chosen digital document workflows and interfaces. In the monthly process, what matters most is whether each data source has a clear status upon receipt and is assigned a processing period.
A delivery overview assigns a status to each data source. Suitable status values are received, to be completed, processable and under clarification. This allows the internal contact person to recognise early on which areas are complete and where additional business context is needed.
Section 238 GERMAN COMMERCIAL CODE requires Bookkeeping from which trading activities and the financial position are apparent and which enables a knowledgeable third party to gain an overview within a reasonable period of time. § 146 AO requires individual, complete, accurate, timely and properly organised entries and records. The GoBD concreise these principles for electronic Buchführung processes and emphasise traceable, complete and verifiable procedures.
Employment status instead of document countA mere count of incoming documents only gives a rough indication of the processing status. A reliable status links the data source, time period, completeness and person responsible.
A document becomes ready for processing through its business context. This includes things like service acquisition, payment method, affected Cost centre, project reference, or assignment to a customer or supplier. Accounting processing combines the document, payment, and explanation into a traceable transaction.
A typical monthly case occurs when bank data is already available and individual invoices arrive later. The payment transaction initially receives a visible clarification status. After the invoice is received, the payment can be clearly assigned and the process completed.
Clarification needs are collated as soon as a secure assignment requires additional information. Each item contains a reference to a document, a specific question, the person responsible, and a desired response date. This format prevents scattered messages and makes the progress of the processing month visible.
Reference to documentThe follow-up query clearly refers to an invoice, payment or business transaction.
AccountabilityA named person provides the technical or operational information.
Deadline for a replyThe appointment fits the agreed release and evaluation time.
For the Collaboration with external accounting a joint clarification process proves effective. Answers are documented directly at the relevant position. This makes it clear which information completed the transaction and who made the decision.
A fixed review meeting brings together the outstanding issues relating to a particular stage of processing. Urgent individual cases are given their own priority. This ensures that the regular monthly process maintains its rhythm and allows those involved to plan their response times reliably.
A correction should make the original procedure, the reason for the change, the new information and the time of processing discernible. This documentation combines technical traceability with a clear status of work.
The approval status indicates that the operational queries relating to the agreed scope of work have been answered and the required corrections have been implemented. It describes the status for the next phase of the process. Additional technical finalisation work will follow in accordance with the responsibilities defined for this purpose.
An approval status requires a scopeThe description should make it clear which period, which data sources, and which evaluation are covered by the status.
To the result of an accounting month can a management accounts, or MANAGEMENT ACCOUNTS for short, a trial balance and a List of open items, or OPOS for short, belong. The specific scope depends on the accounting system, the agreed service profile and the company's information needs.
BWAIt consolidates income and expenses for a period and supports in-year business analysis.
trial balanceIt shows account movements and balances as at the date of the processed entries.
OPOSThe list shows open receivables and payables based on the recorded invoices and payments.
Each analysis is assigned a clear data cut-off date. In addition, it is documented which data sources were processed and which issues are still pending clarification. This enables the recipient to assess the scope and context of the figures.
A MANAGEMENT ACCOUNTS derives its significance from the quality and completeness of the underlying entries. The trial balance and the OPOS analysis also reflect the current status of the entries. A transparent status links the figures to the processing workflow from which they originated.
Clearly state the data as atThe month under review, the posting status, the data sources processed and outstanding issues together form the business context of the analysis.
Every open case is carried over to the next month of processing with three pieces of information: current status, the person responsible and the next deadline. A brief description of the progress to date completes the handover. This ensures that the new month begins with a reliable overview of the work in hand.
For example, an invoice may remain open due to a lack of service allocation. The handover list specifies the relevant department, the agreed date for clarification and the planned processing once the information has been received.
If the same need for clarification arises repeatedly, this indicates a process step that could be adjusted. An additional mandatory note, earlier data submission or a clearly defined approval role could stabilise the next monthly run.
An in-depth analysis of the causes is provided by the classification of typical implementation errors in accounting outsourcing. During regular operations, the focus is on the ongoing maintenance of the target process.
A stable accounting month results from clear handovers and visible work statuses. Data provisioning opens the period. Completeness checks and ongoing processing make the need for clarification visible. Bundled responses and documented corrections lead to the approval status. Reports and open items conclude the month-end run.
Businesses can check their processes using a few control questions: Which data source has which delivery date? Who is responsible for missing business context? When is a clarification list finalised? What accounting status is the evaluation based on? How are open issues carried forward to the following month?
A professionally organized team Financial accounting for companies combines these points with the existing business model, internal responsibilities, and the necessary evaluations. As Partner for the ongoing Financial accounting supports BAS the coordination of data transfers, clarification processes, corrections, and transparent status points in ongoing operational processes.
Brasser Accounting Solutions GmbH is a specialised accounting service provider that supports companies with financial accounting, payroll accounting, and the structuring of modern digital accounting processes. The aim is a collaboration that is professionally sound, organisationally relieving, and reliably functional in everyday use.
Brasser Accounting Solutions GmbH is part of a corporate group with Quint GmbH Tax Consultancy & Auditing and the Swedish accounting and tax firm Service Place Årjäng AB.
