A successful month-end process enables the finance department of a CHC to create accurate financial statements in a timely manner. The process begins with a schedule created to facilitate the process of closing specific areas within finance. This schedule would include such items as reconciling all bank accounts, closing date for accounts payable, closing of patient accounts receivable, all other receivables, prepaid items, the timing for completion of specific journal entries, and any other item that impacts the CHC’s financial statements. Once all journal entries are completed there should be a reconciliation process of all balance sheet accounts on a monthly basis. This process will ensure that the information reported is accurate and up to date. 

At this point the financial statements are prepared which include, at a minimum, a Balance Sheet, Income Statement and Narrative Report. One of the more successful presentations of the Balance Sheet is to report each month in a columnar fashion to allow for comparison on a month-to-month basis. This helps identify potential problem areas quickly. For example, if there is an extreme decrease in cash from one month to the next you would want that to be quickly identified and resolved. The Income Statement should be presented as consolidated, but could potentially be reported by location, department, or service type. The decision should be based on the most effective use for your organization. Lastly, the Narrative Report should describe the position of the organization, identify any anomalies, and justification for each one of those. A successful month-end process will create information that allows the CHC to make informed financial decisions.