Tax Accountant Victoria AlternativeClose the month you can trust
An open month is a hole. Nobody prepares the return while the bank and the books still name two cash figures. A guessed number does not close that hole.
What closed actually means
The cash the bank shows and the cash the books show are the same number. The sales you recorded are the sales you delivered. The bills you recorded are the bills you owe. When those three agree, the month can be used. When one of them is still a guess, the month stays open.
A receipt in a drawer is enough to keep a month open. So is a customer payment that was booked as a sale on the day it landed, before the work was delivered. So is a payday that ran in the provider and never reached the books. The close is the work of putting each of those in the month it belongs to.
Why the return cares
The federal return is the sum of the months. Beginning balances, money you put in, money you took out, and the profit have to land on the ending balances. A hole in one month shows up as a return that cannot point at its own year.
An open month is what we will say out loud, instead of a return propped up by a made-up figure. You hear that before you commit. If you want the return, the month gets closed first. If you want to wait, we wait with you and the year stays honest.
A month you can hand to someone
After the close, the month is a set of pages you can hand to a lender, a partner, or your future self without a speech. The speech is what an open month requires. The closed month does not. A month that needs no speech is what this work is for.
The same month is what a later voucher should follow. April, June, September, and January are easier when the months underneath them are already dull. The estimate months page stays with that calendar. A deposit that arrived early is sorted on the cash page before the month is called closed.
Which month is still open
You will be talking to the Steven Palmieri practice.