A steady month-end close helps leaders trust the numbers. It also speeds planning and board work. Many teams struggle because tasks live in chats and personal sheets. This guide gives a simple 10-day plan. It names owners, lists checks, and shows how to leave a clean trail.
Why a month-end close matters
A clear close gives a single view of revenue, costs, cash, and runway. It prevents last minute edits that confuse teams. It also lowers audit time because evidence is easy to find. When the close is steady, you can spot issues early and fix them before they grow.
Close goals and owner roles
Write three goals for every month-end close:
- Accuracy: balances tie to source systems and banks
- Speed: reports are ready on the date you promised
- Evidence: each entry has clear backup in a shared folder
Assign roles:
- Close lead: runs the checklist and status
- AR owner: billing, revenue, and collections view
- AP owner: vendor bills, expenses, and payments
- Payroll owner: payroll, benefits, and related taxes
- GL owner: journals, reconciliations, and tie outs
- FP&A owner: variance review and dashboard refresh
The 10-day plan
Day 0: Pre-close prep
- Freeze changes to price lists and tax settings after a set hour
- Send a reminder for timesheets, expense reports, and vendor invoices
- Lock the billing period in the system so late invoices do not slip into the wrong month
- Verify bank feeds are current and that all multi-currency accounts download cleanly
Deliverables
- Pre-close checklist posted
- List of open items and owners
Day 1: Cash and bank
- Reconcile all bank accounts to statements or feeds
- Post cash entries, merchant settlements, credit card activity, and petty cash
- Clear old recon items and list any that remain with dates and notes
Deliverables
- Bank recs signed by the GL owner
- Cash balance rollforward
Day 2: Revenue and AR
- Export invoices and usage from billing
- Post revenue and AR journals with deferrals or usage as needed
- Review credits, write offs, and chargebacks with links to the source
- Update the AR aging and tag large past due items for collections
Deliverables
- Revenue schedule by product or plan
- AR aging with notes on top accounts
Day 3: COGS and inventory
- Record received goods and match to POs and vendor bills
- Allocate landed costs such as freight and duty to items
- Post COGS and inventory adjustments for counts or write offs
- For software, post hosting costs and delivery support to COGS when policy calls for it
Deliverables
- Inventory rollforward and variance notes
- COGS by product or category
Day 4: AP, expenses, and purchasing
- Capture all vendor bills and approvals for the period
- Accrue missing invoices based on POs, contracts, or usage
- Post corporate card expenses and attach receipts
- Review prepaid and deferred schedules and post entries
Deliverables
- AP aging with due dates
- Accrual journal list with backup
Day 5: Payroll and benefits
- Import payroll and benefits journals from the provider
- Accrue unpaid bonuses, commissions, and vacation if policy requires it
- Reconcile payroll tax liabilities by jurisdiction
Deliverables
- Payroll summary with headcount by department
- Commission and bonus accrual calc
Day 6: Fixed assets and other accruals
- Post capitalized items to the fixed asset subledger
- Run depreciation and tie to the GL
- Accrue recurring costs such as rent, utilities, and software
- Review legal, audit, and other professional fees and accrue if needed
Deliverables
- Fixed asset rollforward and depreciation report
- Accruals list with dates and methods
Day 7: Taxes and compliance
- Sales tax or VAT payable tie out to returns in progress
- Income tax estimates and any local levies recorded
- Review debt covenants and interest accruals
- Confirm any government filings due next month
Deliverables
- Indirect tax tie out by jurisdiction
- Income tax provision summary
Day 8: Intercompany and consolidation
- Bill intercompany services and goods based on agreements
- Eliminate intercompany balances on consolidation
- Translate foreign currency balances and record gains or losses
- Confirm minority interest and equity method entries
Deliverables
- Intercompany matrix with pre- and post-elimination views
- Consolidation worksheet
Day 9: Variance review and sign-offs
- Prepare trial balance and preliminary P&L and cash flow
- FP&A runs variance vs budget and vs last month with short notes
- Close lead reviews large changes with each owner
- CFO signs off on the draft once notes are clear
Deliverables
- Variance deck with three to five key drivers
- Sign-off log for each section
Day 10: Publish reports and archive evidence
- Publish the final package: P&L, balance sheet, cash flow, and KPIs
- Refresh the dashboard and share a one page summary
- Archive journals, recs, exports, and screenshots in a dated folder
- Hold a 20-minute retro and add two small improvements to next month’s plan
Deliverables
- Final close package
- Archived evidence checklist
Controls, documentation, and audit trail
Controls are not extra work. They protect the process and save time later.
- Keep role based access in the GL and subledgers
- Use prepared-by-client lists so each journal has a named owner and a file path
- Require attachments for all manual journals
- Run a segregation of duties review for vendor setup and payments
- Keep change logs for price lists, tax settings, and revenue rules
- Store closing calendars and sign-off logs in a shared folder
A clear trail lets a new team member follow the path without long calls. It also reduces repeat questions from auditors and leaders.
Automation ideas that save time
Start with small wins that remove manual steps.
- Bank feeds with auto-match rules for common items
- Scheduled exports from billing and payroll into the GL
- Templates for accrual journals with simple inputs
- Reconciliation tools for cash, AR, and AP
- A light data pipeline to push actuals into dashboards right after close
Automate only what you understand. Keep humans in the loop for outliers and approvals.
Close KPIs and continuous improvement
Track a short set of metrics each month.
- Close time: days from period end to final package
- On-time tasks: percent of checklist items completed by target day
- Recon quality: reconciling items older than 30 days
- Adjustments: number and size of post-close entries
- Variance clarity: percent of large variances with a one line note
Pick one item to improve each month. Small gains add up and keep the team engaged.
Risks to watch and quick fixes
Late data from source systems
Fix by setting a lock time and a backup export method. If usage or invoices lag, accrue and true up next month.
Unposted vendor bills
Fix by using POs and requiring bill uploads before a set date. Accrue from POs when bills are late.
Manual revenue errors
Fix by using a revenue subledger or clear schedules with version notes. Test one order per plan each month.
Weak bank reconciliations
Fix by reconciling weekly during the month, not only at close. Keep a clearing list with dates.
Lost evidence
Fix by saving source files and screenshots in a dated folder with a standard name. Do not rely on personal drives.
Too many last minute changes
Fix by setting a draft cutoff on Day 9. Move noncritical items to next month and record the reason.
Next steps
Adopt the 10-day plan this month. Name owners and publish the checklist. Run Day 0 tasks before period end. Hold short daily standups during the close. On Day 10, archive the package and run a quick retro. In two cycles, your close will be faster, cleaner, and easier to review.
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