Month-End Accounting

Use this checklist to review the period before closing General Ledger transactions. Adapt the sequence to your organization's accounting policy.

Before you begin

• Confirm the period end date and the cut-off policy.
• Ask operational teams to finish or identify incomplete sales, purchasing, inventory, manufacturing, payroll, and fixed-asset transactions.
• Ensure you have permission to post adjustments and close the period.

Recommended sequence

1. Complete and review transactions. Find unposted, unapproved, uninvoiced, or outstanding documents.
2. Reconcile bank accounts. Match bank activity and investigate unexplained differences.
3. Review receivables and payables. Check aged balances, unapplied payments, credit notes, and unusual supplier or customer balances.
4. Review inventory and production. Investigate negative stock, unusual adjustments, open work orders, and valuation exceptions.
5. Post recurring and adjusting entries. Include accruals, prepayments, depreciation, payroll, exchange differences, and approved corrections as applicable.
6. Run financial reports. Review Trial Balance, profit and loss, balance sheet, and supporting reports.
7. Close the period. Use Closing GL Transactions only after review and approval are complete.

Final checks

• Subledger control totals agree with General Ledger.
• Bank reconciliation differences are explained.
• Suspense, clearing, and temporary accounts have expected balances.
• Adjusting entries have descriptions and supporting documents.
• Reports are saved according to your audit and retention policy.