A month-end close checklist that actually holds up

A month-end close is only as good as its repeatability. When the close depends on one person remembering the steps, it slips the moment they’re out — and numbers go out the door that no one fully stands behind. A written checklist, worked the same way every month, is what turns the close from a scramble into a routine. Here’s a structure that holds up.

Cash

• Reconcile every bank account to its statement — the anchor of the whole close. If one won’t balance, our guide on reconciliation problems covers the usual causes.
• Reconcile credit cards the same way.
• Clear or investigate stale outstanding items.

Accounts receivable

• Confirm all invoices for the period are entered and dated correctly (a cutoff check).
• Review the AR aging for anything genuinely uncollectible; consider an allowance.
• Tie the AR sub-ledger total to the general ledger control account.

Accounts payable

• Enter all bills for the period — the most common cause of an understated expense is a bill sitting in someone’s inbox.
• Accrue for goods or services received but not yet billed.
• Tie the AP sub-ledger to its control account.

Payroll

• Reconcile payroll to the general ledger — wages, taxes and deductions posted should match what payroll actually ran.
• Accrue wages earned but not yet paid at period end.

Inventory and fixed assets

• Reconcile inventory value to the sub-ledger; investigate negative quantities.
• Record depreciation for the period.

Accruals and deferrals

• Post recurring accruals and amortise prepaids (insurance, subscriptions, rent).
• Recognise deferred revenue that’s now earned.
• Reconcile any intercompany balances.

Review and lock

1. Review the P&L and balance sheet against prior periods and budget — unexpected swings are how you catch a missed or miscoded entry.
2. Scan the general ledger for anything posted to suspense, uncategorised, or Opening Balance Equity.
3. Once satisfied, lock the period so no one back-dates into a closed month.

Tightening a close that keeps slipping

• Assign an owner to each area, with a due day — a shared close is a slow close.
• Enforce cutoffs so late entries don’t reopen finished work.
• Standardise recurring entries so they’re never forgotten.
• Start from clean data. A close built on a messy or freshly-migrated file fights you every month; the cleaner the underlying data, the faster the close.