Whatever accounting system you use, the following checklist covers most of the tasks that need to be completed before you can close the books. A month-end close template can get you started on developing the best process for your organization.
1) Confirm all transactions for the period
- Post or import payroll. Make sure all timesheets have been submitted and approved.
- Verify that all accounts payable bills are in the system, including recurring bills.
- Verify that all accounts receivable invoices are in the system and that all recurring invoices have been generated.
- Verify that all expense reports have been submitted and approved and all invoice payments have been recorded.
- Post or import all credit and debit card charges.
2) Post-closing entries in the general journal
- Review and post revenue recognition from schedules.
- Post deferrals, accruals, and reversals.
- Post depreciation, amortization, and any other revenue or expenses from other modules.
- Verify that all entries that should have been entered actually were entered.
3) Close sub-ledgers, if any
- Check for any transactions that are in draft form, recurring transactions that have failed, and transactions still awaiting approval.
4) Perform all reconciliationsHandle approvals
- Reconcile all bank accounts to bank statements. High-volume accounts may be easier to manage with weekly or even daily reconciliation.
- Reconcile all charge accounts.
- Reconcile AP aging to sub-ledger and subledger to General Ledger.
- Reconcile AR aging sub-ledger and subledger to General Ledger.
- Reconcile Prepaids, Fixed Assets, Work in Progress, and any Deferred Revenue accounts.
- Reconcile actual inventory to inventory in the General Ledger.
5) Run review reports
- P&L Variance or Budget vs. Actual.
- Investigate any unusual changes.
Once all of these tasks are completed, you’ll be ready to follow the specific instructions for closing the books in QuickBooks, Netsuite, or Sage Intacct.