Month-End Close Process for Real Estate CFOs
The month-end close process is a critical component of financial management in real estate portfolios. It ensures accuracy, completeness, and timely reporting of financial data to stakeholders. Below are the detailed stages involved in this process, along with practical strategies for CFOs to shorten the close period.
Stage 1: Revenue Recognition
Close Task: Record rental income and other revenue sources.
- What to Verify: All rent invoices issued; non-recurring revenues recorded accurately.
- Owner/CFO Review: Property Accountant verifies accuracy before submission.
Stage 2: Accounts Payable (AP) Cut-off
Close Task: Finalize all outstanding vendor payments.
- What to Verify: No pending invoices beyond the cutoff date; accruals for services not yet invoiced.
- Owner/CFO Review: Controller reviews and approves accrual entries.
Stage 3: Bank Reconciliation
Close Task: Match bank statements with accounting records.
- What to Verify: All transactions posted, no discrepancies.
- Owner/CFO Review: Property Accountant verifies before submitting for review.
Stage 4: Rent Roll Reconciliation
Close Task: Compare rent
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