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My private company is having large investors come in mid-month and want me to prorate BS & IS items for mid-month and have a regular close.. how do I keep them separate?

Melissa Rice's Profile

I work for a private company which is having investors come in mid-month, however, the investment is really in the company that owns my company. For this reason, they want to keep track of everything at of the day of purchase and then close the month as usual. I wanted to know the best way to handle this. I have one idea but thought I'd check with the community to see if anyone else has any ideas. I will need to be able to run reports out of our reporting system, so keeping it in Excel won't work. Thank you!


Maple A
Title: CPA retired
Company: Retired
(CPA retired, Retired) |

For the mid- month numbers, you have to pull a mid- month balance sheet and P&l from the G/L. Then place those figures on Excel and adjust income for items that are not typically posted daily. For example, be sure to record a half month of wages, a half month of depreciation, a half month of amortization, a half month of rent, a half month of insurance expense, etc. Compare these projected results to last months actual P&L divided by two to get a sense of anything that looks odd or was missed. Remember to adjust the mid-month balance sheet for any income adjustment that affects the balance sheet.

If indeed you MUST run the report out of your reporting system. use the Excel sheet as a guide to tell you what to actually record in the reporting system. Run the report from the reporting system as of mid-month , then reverse those half month adjusting entries so they do not affect your next real month end close.

Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

I am not sure why this is even a problem. For all intents and purposes, one can (I argue that the system should be designed to be able to ) close everyday (or any day) and not just at the end of the month. Closing is just recording everything that needs to be recorded or recognized. Your system reports should still work with an "as of date" parameter.

Maybe I am just missing something.

Jessica Smith
Title: Account Specialist
Company: Cogneesol
(Account Specialist, Cogneesol) |

I would suggest you contact experts who have a huge knowledge of accessing accounting software. Even if a manual system makes the most sense for you today, you should keep one eye on the future and have a plan in place to transition to a computerized system. It is not only time and money saving but will also help to keep all the track of your entries properly and error free.
A lot of businesses these days outsourcing their work to software expert companies. They are not only minimizing the burden of their work but also helping for generating revenue.
If you still have questions or need further information about it you can inbox me


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