The month-end close checklist, step by step.
The work in the order it should happen, from the weeks before month end to sign-off, with what each step ties to and where the time usually goes.
Key points
- Much of the close can happen before month end: coding, bank and card reconciliations and recurring entries.
- Close the subledgers first, then reconcile the balance sheet, then review the income statement.
- A shorter close comes from moving work earlier, not from working faster on day one.
Before month end
- Code bills, receipts and bank and card transactions as they arrive.
- Reconcile bank and card accounts daily or weekly, not only at month end.
- Chase missing receipts and vendor W-9s while the month is still open.
- Confirm cutoff dates with whoever runs payables, billing and payroll.
- Review open purchase orders and contracts for what will need accruing.
Day 1: cutoff and subledgers
- Close payables and receivables for the period.
- Record payroll and the payroll liabilities.
- Book recurring entries: rent, subscriptions, loan interest.
- Post billings and recognize revenue from the contract schedules.
Days 1 to 3: reconcile the balance sheet
Every balance sheet account ties to something outside the ledger. The reconciliation shows the two agree and explains any difference.
| Account | Ties to |
|---|---|
| Cash and credit cards | Bank and card statements |
| Accounts receivable | The receivables aging |
| Prepaid expenses | The prepaid schedule |
| Fixed assets | The fixed asset register, with additions, disposals and depreciation |
| Accounts payable | The payables aging |
| Accrued liabilities | The accrual schedule, with last month’s reversals |
| Deferred revenue | The revenue schedules, contract by contract |
| Intercompany | The other entity’s due-to and due-from |
| Payroll liabilities | The payroll provider’s reports |
Explain differences rather than plug them, and attach the support. A plug hides an error until it’s bigger.
Days 2 to 4: adjusting entries
- Accruals for goods and services received but not yet billed.
- Prepaid amortization from the schedule.
- Depreciation from the register, including the month’s additions and disposals.
- Deferred revenue and revenue recognition adjustments.
- Intercompany eliminations, for a consolidated close.
- Reclasses found in review.
Days 3 to 5: review
- Review the trial balance for balances on the wrong side and accounts that should be empty.
- Run flux analysis against last month, last year or budget, with commentary for every change over your threshold. Our guide to flux analysis covers thresholds and commentary.
- Review the exceptions: anything above your approval limits.
- For a group, check that the consolidation ties to each entity.
Reporting and sign-off
- Prepare the financial statements and the reporting package.
- Attach the workpapers: reconciliations, schedules and flux.
- Sign off, then lock the period in the ledger so nothing posts to it by mistake.
Who does what
Every task needs an owner and a reviewer, and the two should be different people. On a small team that might be the same two people for everything; the rule still holds.
| Task | Prepares | Reviews |
|---|---|---|
| Coding and payables | Staff accountant or bookkeeper | Senior accountant |
| Bank and card reconciliations | Staff accountant | Senior accountant |
| Accruals and prepaids | Senior accountant | Controller |
| Fixed assets and depreciation | Senior accountant | Controller |
| Revenue and deferred revenue | Revenue accountant | Controller |
| Flux analysis | Senior accountant | Controller |
| Financial statements and sign-off | Controller | CFO |
A close calendar
Write the calendar down, with a day for each task, and keep it the same every month. A shared calendar makes it obvious where the close is waiting.
| When | What gets done |
|---|---|
| All month | Coding, bank and card reconciliations, missing support chased |
| Day 1 | Cutoff; payables, receivables, payroll and revenue posted |
| Days 1 to 3 | Balance sheet reconciliations |
| Days 2 to 4 | Accruals, amortization, depreciation, revenue and eliminations |
| Days 3 to 5 | Flux, trial balance review and exceptions |
| Day 5 | Financial statements, package and sign-off |
What to measure
- Days to close: business days from month end to sign-off.
- Adjustments after review: entries booked after reconciliations were signed off. A high number means problems are found late.
- Reconciliations on time: the share finished by their day on the calendar.
- Aged reconciling items: differences carried for more than a month. These are where errors hide.
How to close faster
Teams that close in days rather than weeks don’t work harder on day one. They move the work earlier.
- Reconcile continuously. Daily bank and card matching leaves nothing to catch up on at month end.
- Standardize the schedules. Prepaids, fixed assets and deferred revenue should roll forward from the same schedule every month.
- Review by exception. Set thresholds so people look at what’s unusual, not every line.
- Keep support with the entry. Attach the invoice or statement when the entry is made, not when the auditor asks.
This is the work Zenday’s agents take on: the books stay current all month, and the close starts at review. In the sample company, Halden Software, the September close was signed off on day 4 against a 2025 average of day 12. See the month-end close in Zenday.
In ZendayMonth-end closeThe close prepared before day one, with every task on one checklist and its workpaper attached.