A Practical Month-End Close Checklist

A disciplined month-end close is one of the clearest signs of a well-run finance function. When the close follows a consistent, documented sequence, reporting is faster, reconciliations hold up to scrutiny, and management receives information it can act on. The following checklist outlines a practical order of work.

1. Prepare before the period ends

Much of a smooth close is set up in advance:

• Agree the close calendar and the cut-off date with everyone who submits information.
• Confirm who is responsible for each deliverable and by when.
• Chase outstanding invoices, expense claims and payroll inputs before the cut-off.

2. Complete transaction processing

• Record all revenue and ensure invoices for the period are raised.
• Enter supplier invoices and employee expenses up to the cut-off.
• Post cash receipts and payments, and clear any suspense items.

3. Reconcile the balance sheet

Balance sheet reconciliations are the backbone of a reliable close:

• Reconcile every bank and credit card account to statements.
• Reconcile accounts receivable and accounts payable to their sub-ledgers.
• Review and support prepayments, accruals, fixed assets and loan balances.

4. Record period-end adjustments

• Post accruals for costs incurred but not yet invoiced.
• Recognise prepaid expenses over the correct periods.
• Record depreciation, provisions and any revenue-recognition adjustments.

5. Review and report

• Review the trial balance for unusual balances or missing entries.
• Compare the profit and loss and balance sheet against prior periods and budget.
• Prepare management reporting with commentary on significant variances.

6. Document and improve

Keep the supporting schedules, reconciliations and a short close file for each period. Over time, note where the close slowed down and refine the calendar, templates and checklists accordingly. A close that is documented is a close that can be reviewed, handed over and steadily improved.