Monthly Close Checklist for Growing Teams
A clean monthly close is the foundation of financial clarity. When your books close on time and accurately, everything else becomes easier: reporting, planning, and decision-making.
But for growing teams, the monthly close can feel chaotic. Here's a framework that scales with you.
Week 1: Preparation (Days 1-7)
Start each month by preparing for the close.
Reconcile bank accounts: Ensure all transactions through month-end are recorded. Match your bank statements to your accounting system.
Review outstanding items: Check for pending invoices, bills, or payroll that need to be accrued.
Confirm cut-off dates: Establish clear rules for when transactions belong to the current month vs. next month. Document exceptions.
Set the timeline: Communicate the close schedule to your team, including who's responsible for what and when.
Week 2: Data Collection (Days 8-14)
Gather all the pieces you'll need.
Collect all invoices: Ensure vendor bills are received and coded. Set up a process for late-arriving invoices.
Confirm revenue: Review all customer invoices issued. Verify revenue recognition matches your policies.
Record payroll: Process payroll and record all payroll-related expenses (benefits, taxes, etc.).
Document exceptions: Track any unusual transactions or one-time items that need explanation.
Week 3: Reconciliation (Days 15-21)
Reconcile every account balance sheet account.
Bank reconciliations: Complete reconciliations for all bank accounts. Investigate and clear any discrepancies.
Credit card reconciliations: Match credit card statements to transactions. Ensure all business expenses are properly categorized.
Accounts receivable: Review aging reports. Confirm all customer payments are applied correctly.
Accounts payable: Review vendor balances. Ensure all bills are recorded and payments are applied.
Fixed assets: Update depreciation schedules. Record any new assets or disposals.
Week 4: Review and Close (Days 22-Month End)
Finalize everything before closing.
Review financial statements: Print or review your P&L and balance sheet. Look for unusual items or unexpected variances.
Accrual adjustments: Record any necessary accruals (unbilled revenue, unpaid expenses, prepaid expenses).
Review journal entries: Ensure all manual journal entries are documented and approved.
Final reconciliations: Confirm all reconciliations are complete and signed off.
Close the month: Lock the period in your accounting system. Document any post-close adjustments needed.
Best Practices
Standardize your process: Create a checklist template and use it every month. Consistency reduces errors.
Automate what you can: Set up bank feeds, recurring journal entries, and automated reconciliations where possible.
Document exceptions: Keep a log of unusual transactions or one-off adjustments. This helps during audits and reviews.
Review with stakeholders: Share preliminary results with key stakeholders before final close. Catch issues early.
Learn and improve: After each close, do a brief retrospective. What went well? What could be better?
When You're Ready to Scale
As your business grows, your close process will evolve:
Delegation: Assign specific tasks to team members. Use a shared checklist so everyone knows their responsibilities.
Tighter timelines: Aim to close within 5-7 business days. This requires discipline and good processes.
More automation: Invest in tools that reduce manual work. Your time is better spent on analysis than data entry.
Better reporting: Use your closed books to generate insights. Monthly close isn't just about accuracy—it's about clarity.
The Bottom Line
A clean monthly close isn't about perfection. It's about consistency, documentation, and continuous improvement. Use this checklist as your starting point, then adapt it to fit your business.