Month-End Financial Close

Steps

1. 1

   Cut off accounts payable

   Ensure all vendor invoices for the period are entered.

2. 2

   Reconcile bank accounts

   Match all bank transactions with ledger entries.

3. 3

   Review accounts receivable

   Verify outstanding invoices and apply payments received.

4. 4

   Post depreciation entries

   Calculate and post monthly depreciation for all fixed assets.

5. 5

   Accrue expenses

   Post accrual entries for expenses incurred but not yet invoiced.

6. 6

   Reconcile intercompany

   Balance all intercompany transactions and eliminate entries.

7. 7

   Review trial balance

   Check trial balance for unusual entries or imbalances.

8. 8

   Prepare financial statements

   Generate P&L, balance sheet, and cash flow statements.

9. 9

   Management review

   Present financials to management for review and approval.

10. 10

    Close period

    Lock the period in the accounting system and archive documentation.