It happens like clockwork twelve times a year. Despite its frequency and predictability, month-end closing often causes significant stress for breweries and other small businesses. One of the most effective techniques to manage the month-end process is to create practices and procedures that can be easily replicated each month.
The following checklist provides three recommendations for making this process more manageable:
When a month-end closing date is selected and communicated to everyone, it becomes a planned part of the schedule. An official date is less likely to get pushed back or take people by surprise.
The month-end close can seem like an enormous rigmarole, until you break it down into individual responsibilities and assignments. Create a checklist of all duties and activities, organized by due date, and you’ll have an action plan for success. Make sure to communicate the activities to everyone involved in the month-end close process.
Who’s responsible for what? Make sure all team members have and understand their assigned duties and that one person has overall responsibility for month-end closing. If there are multiple people on the team, cross-train each member on every responsibility. That way, you won’t be caught short-handed when someone goes on vacation, takes a leave of absence, or elects to leave the brewery.
Above all, good communication is the key to a successful monthly close. When systems are in place and your team is encouraged to keep up with activities on a monthly basis, they’ll be able to make progress on key financial activities well in advance of year-end.
For more information on this topic, or to learn how Baker Tilly craft brewery specialists can help, contact our team.