Guide
Month-End Close Checklist. Close in Days, Not Weeks.
The ordered list of close tasks we run with clients, grouped by day so your team knows exactly what comes next.
Quick Answer
What should a month-end close checklist include?
A month-end close checklist should cover four stages: cutoff of sales and bills, reconciliation of every balance sheet account, adjusting entries such as accruals, deferrals, and depreciation, and a final review with variance analysis before reporting and locking the period. Most growing businesses can complete these steps in 5 to 7 business days.
Key Takeaways
- Agree a hard cutoff before month end.
- Reconcile every balance sheet account, every month.
- Explain variances before you publish numbers.
- Lock the period once reports are issued.
Last reviewed by the Sataurius advisory team.
Before Month End: Cutoff
- Confirm all sales and invoices for the month are recorded.
- Collect outstanding vendor bills and employee expense reports.
- Agree a hard cutoff date with operations and sales.
Days 1 to 3: Reconcile
- Reconcile every bank, credit card, and merchant account.
- Reconcile accounts receivable and accounts payable sub-ledgers to the general ledger.
- Reconcile payroll, sales tax, and loan balances.
- Count or roll forward inventory where it applies.
Days 3 to 5: Adjust
- Book accruals for expenses incurred but not yet billed.
- Recognize deferred revenue and amortize prepaid expenses.
- Record depreciation and any reclassifications.
Days 5 to 7: Review and Report
- Review the balance sheet line by line; every balance should have support.
- Run a flux analysis against last month and budget; explain large variances.
- Produce the income statement, balance sheet, cash flow, and KPI pack.
- Lock the period in the accounting system.
Want help running it? Our fractional controller services own the close each month, and the results feed board reporting. Read how clients cut close time by 40%.
FAQ
Frequently Asked Questions
What is a month-end close checklist?
A month-end close checklist is the ordered list of tasks a finance team completes to finalize the books for a month: cutoff, reconciliations, accruals, adjustments, review, and reporting. It makes the close repeatable and lets anyone see what is done and what is outstanding.
How long should a month-end close take?
Most growing businesses should aim to close within 5 to 10 business days. Teams with clean processes and good systems often close in 3 to 5 days. A close that regularly takes longer than 15 days usually points to manual work, missing reconciliations, or unclear ownership.
Which accounts should be reconciled every month?
At minimum: every bank and credit card account, accounts receivable, accounts payable, payroll liabilities, sales tax payable, prepaid expenses, accrued liabilities, inventory where relevant, fixed assets, and any loan or intercompany balances.
Who owns the month-end close?
The controller typically owns the close, assigns tasks, and reviews the results. In smaller companies without a controller, a fractional or outsourced controller often fills this role.