Prepare for external audits
Create financial statements
Apply and estimate rates
Send invoices to customers
Record transactions
Process payroll
Close the month
Prepare reports
Send invoices
Accounting works with cost analysts to create invoices for each project, which include all costs (direct + indirect) that the project incurred during the month.Accounting then sends the invoices to customers and collects the payments.
💰
Prepare reports
After the month is closed, Accounting prepares expense reports and sends them to cost analysts, CAMs, and PMs. These reports help managers monitor their budgets for both project and overhead indexes.
📊
Prepare for audits
External auditors come in to SDL at the end of each fiscal year to test that SDL is being consistent, accurate, and compliant with financial laws. SDL is also audited by DCAA to ensure we are following special government regulations. The Accounting department pulls transactions for auditors to review and helps answer any of their questions.
🔎
Close the month
On the fifth business day, Accounting finalizes and closes out all financial activity for the preceding month. As part of this process, Accounting takes all direct costs on projects for the month and applies overhead rates to estimate the indirect costs for the project.
✔️
Record transactions
Throughout the month, SDL employees charge their time to both project and admin indexes, as well as purchase goods and services. Accounting records all this raw financial data in the company books, making sure each expense is properly categorized.
✍️
Create financial statements
Accounting looks book at all data for the previous year and converts the information into financial statements. These statements summarize the financial health of SDL for leadership and the Board of Directors.
📄
Adjust rates
At the end of the year, Accounting determines what actual indirect expenses were, calculates actual overhead rates, and retroactively applies them to all previous year direct project costs.Estimated rates to use in the upcoming year are also calculated based on last year's actuals.
📏
Process payroll
On the third business day, Accounting processes payroll to solidify all payroll expenses for the month. Based on how employees filled out their timecards, some labor will be charged directly to projects, while other labor will go to overhead indexes.
🏛️
Yearly Accounting Cycle
Marinda Davis
Created on July 23, 2023
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Transcript
Prepare for external audits
Create financial statements
Apply and estimate rates
Send invoices to customers
Record transactions
Process payroll
Close the month
Prepare reports
Send invoices
Accounting works with cost analysts to create invoices for each project, which include all costs (direct + indirect) that the project incurred during the month.Accounting then sends the invoices to customers and collects the payments.
💰
Prepare reports
After the month is closed, Accounting prepares expense reports and sends them to cost analysts, CAMs, and PMs. These reports help managers monitor their budgets for both project and overhead indexes.
📊
Prepare for audits
External auditors come in to SDL at the end of each fiscal year to test that SDL is being consistent, accurate, and compliant with financial laws. SDL is also audited by DCAA to ensure we are following special government regulations. The Accounting department pulls transactions for auditors to review and helps answer any of their questions.
🔎
Close the month
On the fifth business day, Accounting finalizes and closes out all financial activity for the preceding month. As part of this process, Accounting takes all direct costs on projects for the month and applies overhead rates to estimate the indirect costs for the project.
✔️
Record transactions
Throughout the month, SDL employees charge their time to both project and admin indexes, as well as purchase goods and services. Accounting records all this raw financial data in the company books, making sure each expense is properly categorized.
✍️
Create financial statements
Accounting looks book at all data for the previous year and converts the information into financial statements. These statements summarize the financial health of SDL for leadership and the Board of Directors.
📄
Adjust rates
At the end of the year, Accounting determines what actual indirect expenses were, calculates actual overhead rates, and retroactively applies them to all previous year direct project costs.Estimated rates to use in the upcoming year are also calculated based on last year's actuals.
📏
Process payroll
On the third business day, Accounting processes payroll to solidify all payroll expenses for the month. Based on how employees filled out their timecards, some labor will be charged directly to projects, while other labor will go to overhead indexes.
🏛️