Day 1–2: cash
- Download statements for every bank, card and loan account.
- Finish coding transactions and match receipts.
- Reconcile each account to the statement and list reconciling items.
Day 2–3: cut-off
- Make sure all customer invoices for the month are raised, and record unbilled revenue if needed.
- Post vendor bills received; list goods or services received but not billed.
- Review AR and AP ageing for errors, credits and old items.
Day 4–5: adjustments
- Accrue expenses received but not billed.
- Amortise prepaid expenses.
- Post depreciation and amortisation.
- Record payroll journals and reconcile payroll liabilities.
- Recognise deferred revenue according to the company’s policy.
- Revalue foreign currency balances if the company has them.
Day 6: balance sheet and review
- Reconcile every balance sheet account to a schedule.
- Run a flux review against the prior month and budget, and explain movements above your threshold. See flux analysis explained.
Day 7–8: reporting
- Prepare the P&L, balance sheet and cash flow.
- Write short notes on key movements and open items.
- Send for review and record sign-off.
Frequently asked questions
How long should a month-end close take?
For a small business with clean feeds, five to ten working days is common. The first few closes take longer while the checklist settles.
Can we close before every bill arrives?
Yes. Accrue known costs for goods and services received but not yet billed, then reverse the accrual when the bill arrives.
General information only, not legal, tax, audit or professional-conduct advice. Rules, standards and software features change, so confirm the position that applies to your firm before you act. See our disclaimer.
