Month-end close

The six steps

1. Set-up: choose the close cycle, the close date and how many working days you allow. End of last month fills the date for you.
2. Tasks: a standard list is ready (bank reconciliation, payroll accrual, prepayments, provisions, ledger tie-out, variance review). Give owners in one go and spread due dates. A task that needs evidence is accepted only with its evidence attached.
3. Reconciliations: add your control accounts, type the ledger balance and the subledger or bank figure. A material difference blocks the close; a trivial one certifies itself.
4. Variances: a material, unfavourable variance against the budget needs a reason. Pick one in a click or write your own.
5. Controls: suspense and clearing accounts must be zero, and intercompany balances must match on both sides.
6. Review and lock: everything that blocks the close is listed with the risk score and the close memo. When every gate is clear, lock the period.

Questions