I look back to my first month end close out as a property manager and what an undertaking it appeared to be. When I first started doing month end close outs I was missing the most important part of the process. I made mistakes and swore that the close out was my enemy. I did not understand why I was doing these steps and what the purpose was for the entire process.
Once I understood why I did the items on my checklist and the impact they had on the accounting department I was able to take steps throughout the month that ensured a hassle free close out. Eventually the close out process became a valuable tool for me to analyze the performance of my property for the month and to have a deeper understanding of financial statements. Too often we train on the process itself and not the purpose behind the process. If we are unable to find and explain a valuable purpose for having a certain process, then it is time for a change.
I have also worked for companies who handle the entire close out in the corporate office. I am curious which practice is more common.
Do your companies have the on-site teams process the month end close or are they entirely handled by the corporate office? For those of you in the field do you have any tips to share for making month end close out a smooth one?
