Month End Closing Checklist

End-of-the-Month Accounting Guide

Prepared By:	Company Name:
[Your Name]	[Your Company Name]

The checklist is meticulously crafted to streamline your financial procedures and ensure accuracy and efficiency at the end of each month. This checklist serves as a comprehensive guide, outlining essential tasks to be completed before finalizing financial statements. Simply follow the step-by-step instructions to facilitate a smooth and organized month-end closing process.

I. Account Reconciliation

This section includes tasks in verifying account balance accuracy at the end of the month.

	Tasks
	Implement a reconciliation software to automate the reconciliation process, reducing human error and saving time.
	Conduct intercompany reconciliations to ensure transactions between subsidiaries are accurately recorded and eliminated in consolidation.
	Review aged receivables and payables to identify and address long-standing issues affecting financial accuracy.

II. Journal Entries and Accruals/Deferrals

This segment of the checklist addresses the necessary bookkeeping items for accurate financial statements.

	Tasks
	Assess prepaid expenses and adjust amortization schedules as necessary to ensure accurate monthly expense recognition.
	Ensure expenses are recognized in the period in which the related revenue is earned, enhancing the accuracy of financial reporting.
	Ensure that all capital expenditures are accurately recorded and classified and that depreciation schedules are updated.

III. Financial Reporting

This section ensures the production of accurate financial reports.

	Tasks
	Compare actual results to budgeted/forecasted figures and analyze any significant variances to understand the underlying causes.
	Refresh financial dashboards and key performance indicators (KPIs) to provide a quick snapshot of financial health to management.
	Assess the company's compliance with any loan covenants or financial ratios required by creditors or investors.

IV. Audit Preparation

In this category, the tasks revolve around preparing for any potential audits, internally or externally

	Tasks
	Conduct an internal review of high-risk areas to identify and address any potential issues before the external audit.
	Review and document any changes to internal controls over financial reporting to ensure they are current and effective.
	Confirm that accounting policies and procedures are up-to-date and in compliance with applicable standards and regulations.

V. Closing Procedures

This section covers tasks required to close the financial period officially.

	Tasks
	Finalize all financial statements, ensuring they accurately reflect the company’s financial activities and position.
	Lock the period in the accounting system to prevent any changes, ensuring the integrity of financial data.
	Conduct a final review for financial accuracy and completeness, addressing any remaining discrepancies.
	Document any significant financial issues or discrepancies identified during the closing process for future reference and action.
	Officially declare the books as closed for the period, communicating the closure to all relevant departments and stakeholders.