Month-end close checklist: [Client name]
Replace everything in [square brackets].
Close details
| Item | Detail |
|---|---|
| Client | [Client name] |
| Period | [Month and year] |
| Prepared by | [Name] |
| Reviewed by | [Name, not the preparer] |
| Close deadline | [Date, e.g. fifth working day] |
Before month-end
- Close dates agreed with the client: when statements, payroll and supplier bills will be in.
- Document request sent: bills, receipts, sales not yet invoiced, new loans or finance, asset purchases.
- Every bank feed connected and current, including credit cards, loans and payment platforms.
- Prior month locked.
Days 1 to 2: cash
- Every bank, credit card and loan account reconciled to the statement closing balance, not just the feed.
- Unreconciled items older than 30 days cleared or explained.
- Payment platform clearing accounts reconciled: gross sales, fees, refunds and payouts.
- Transfers between accounts matched on both sides.
- Unknown transactions coded, or sent to the client as one question list, not ten emails.
- Cash takings and petty cash counted and recorded, if the business handles cash.
Days 2 to 3: sales and receivables
- Every sale for the month invoiced; client asked about work done but not yet billed.
- Customer payments applied to invoices; no unallocated receipts left.
- Credit notes and refunds recorded.
- Aged receivables reviewed: chase list sent to the client, doubtful debts flagged for the accountant.
Days 2 to 3: purchases and payables
- Every supplier bill for the month entered, including late arrivals.
- Statements from the main suppliers matched to the payables ledger.
- Aged payables reviewed for duplicates and bills paid but still showing open.
- Recurring bills and subscriptions checked: still needed, still the right amount.
Day 3: payroll and employee liabilities
- Payroll posted for every pay run in the month.
- Payroll liability accounts (tax withheld, superannuation or pension, other deductions) reconciled to the payroll reports.
- Payroll reporting done for each pay run: Single Touch Payroll in Australia, RTI in the UK, and in the US federal and state payroll tax deposits made on schedule.
- Superannuation, pension or retirement contributions paid by their due date.
- Leave balances and accruals updated, if the client reports them monthly.
Days 3 to 4: GST, VAT and sales tax
- Tax codes spot-checked on the month's largest transactions and on anything coded tax-free or out of scope.
- GST, VAT or sales tax control account reconciled to the tax report.
- Imports, reverse-charge and private-use items treated correctly.
- Upcoming deadlines noted: BAS in Australia, VAT return in the UK, sales tax returns in each US state where the client is registered.
Day 4: adjustments
- Accruals posted for costs incurred but not yet billed (utilities, contractors, interest).
- Prepayments released for the month (insurance, annual software, rent in advance).
- Income billed in advance deferred and released as it is earned.
- Depreciation posted; new assets added to the register and disposals recorded.
- Loan accounts reconciled to lender statements, with interest and principal split.
- Stock adjusted to the count or system value, if the client holds stock.
- Owners' or directors' loan and drawings accounts reviewed.
Day 5: review, lock and report
- Every balance sheet account supported by a reconciliation or a schedule.
- Suspense and clearing accounts at zero, or explained in the notes.
- Profit and loss compared with last month and the same month last year; large movements explained.
- Reviewer (not the preparer) has checked and signed off.
- Period locked in the ledger (Xero calls it a lock date; QuickBooks Online calls it closing the books).
- Reports sent to the client with three lines on what changed and what needs their decision.
- Question list, working papers and this checklist saved to the client file.
Notes and sign-off
| Open item | Waiting on | Due |
|---|---|---|
| Blank | Blank | Blank |
| Blank | Blank | Blank |
| Blank | Blank | Blank |
| Role | Name | Date |
|---|---|---|
| Prepared | Blank | Blank |
| Reviewed | Blank | Blank |