Month-End Close Orchestrator

Overview

The month-end close is a recurring, time-sensitive process involving multiple people, systems, and dependencies. Most companies have this process in someone's head or scattered spreadsheets. This skill provides a structured framework to ensure consistent, complete, and timely closes.

Close Process Framework

┌─────────────────────────────────────────────────────────────────┐
│                    MONTH-END CLOSE PHASES                       │
├─────────────────────────────────────────────────────────────────┤
│                                                                 │
│  PHASE 1          PHASE 2          PHASE 3          PHASE 4    │
│  ────────         ────────         ────────         ────────   │
│  Pre-Close        Transaction      Reconciliation   Reporting  │
│  (Day -2 to 0)    Close            & Review         & Sign-off │
│                   (Day 1-3)        (Day 3-5)        (Day 5-7)  │
│                                                                 │
│  Cutoffs          Post entries     Reconcile        Financial  │
│  Accruals         Close subs       Analyze          statements │
│  Reminders        AR/AP close      Investigate      Management │
│                   Inventory        Approve          review     │
│                                                                 │
└─────────────────────────────────────────────────────────────────┘

Close Calendar

Standard Timeline

CUSTOMIZATION REQUIRED:
┌─────────────────────────────────────────────┐
│ Your close timeline:                        │
│                                             │
│ Hard close deadline: Day ____               │
│ Soft close deadline: Day ____               │
│ Board reporting deadline: Day ____          │
│ External reporting deadline: Day ____       │
│                                             │
│ Adjust day assignments above accordingly    │
└─────────────────────────────────────────────┘

Phase 1: Pre-Close (Day -2 to 0)

Pre-Close Checklist

PRE-CLOSE CHECKLIST
───────────────────
CUTOFF COMMUNICATIONS:
□ Send expense report deadline reminder
□ Send invoice submission deadline reminder
□ Send timesheet deadline reminder
□ Notify departments of accrual needs
□ Confirm bank feed connectivity

PRELIMINARY WORK:
□ Review open POs for accrual needs
□ Review pending invoices
□ Identify known large/unusual transactions
□ Prepare preliminary accrual estimates
□ Verify month-end falls on business day (or plan)

SYSTEM PREPARATION:
□ Verify all users have access
□ Confirm integrations are running
□ Back up prior period data
□ Clear any system errors/warnings

Cutoff Communication Template

MONTH-END CUTOFF REMINDER
─────────────────────────

To: All Employees
Subject: Month-End Cutoff - Action Required by [Date]

The accounting team is preparing to close [Month] books.

DEADLINES:
• Expense reports: [Date] by 5:00 PM
• Purchase requests: [Date] by 5:00 PM
• Timesheets: [Date] by 5:00 PM
• Invoice submissions: [Date] by 5:00 PM

Submissions after these deadlines will be recorded in [Next Month].

If you have questions about pending transactions, contact [Name/Email].

Thank you,
Accounting Team

Phase 2: Transaction Close (Day 1-3)

Day 1 Tasks

DAY 1 CHECKLIST
───────────────
CASH & BANKING:
□ Download bank statements
□ Import/enter bank transactions
□ Complete bank reconciliation(s)
□ Investigate outstanding items >30 days
□ Clear reconciling items where possible
□ Document outstanding items

CREDIT CARDS:
□ Download credit card statements
□ Match to expense reports
□ Identify unsubmitted expenses
□ Complete credit card reconciliation
□ Post credit card accrual if needed

INITIAL JOURNAL ENTRIES:
□ Post standard recurring entries
□ Post automated entries (depreciation, amort)
□ Review auto-posted entries for accuracy

Day 2 Tasks

DAY 2 CHECKLIST
───────────────
ACCOUNTS RECEIVABLE:
□ Post all invoices for the period
□ Apply cash receipts
□ Review AR aging
□ Assess bad debt/allowance
□ Post bad debt adjustment if needed
□ Reconcile AR subledger to GL

REVENUE RECOGNITION:
□ Review deferred revenue schedule
□ Calculate revenue to recognize
□ Post revenue recognition entries
□ Reconcile deferred revenue
□ Document any judgments

ACCOUNTS PAYABLE:
□ Enter all received invoices
□ Review uninvoiced receipts (3-way match)
□ Calculate AP accrual
□ Post AP accrual entry
□ Reconcile AP subledger to GL

Day 3 Tasks

DAY 3 CHECKLIST
───────────────
PAYROLL:
□ Verify payroll posted correctly
□ Calculate payroll accrual (earned not paid)
□ Post payroll accrual
□ Reconcile payroll accounts
□ Verify payroll tax liabilities

PREPAIDS & DEFERRALS:
□ Update prepaid amortization schedules
□ Post prepaid expense entries
□ Review for new prepaids
□ Reconcile prepaid accounts

FIXED ASSETS:
□ Post depreciation entries
□ Record any additions/disposals
□ Reconcile fixed asset subledger
□ Update depreciation schedules

OTHER ACCRUALS:
□ Post expense accruals
□ Post bonus/commission accruals
□ Post interest accruals
□ Review accrual completeness

Standard Journal Entry Template

JOURNAL ENTRY TEMPLATE
──────────────────────
Entry #: [Auto/Manual]
Period: [Month/Year]
Date: [Entry Date]
Preparer: [Name]
Approver: [Name]

Description: [Clear description of entry purpose]

┌──────────────────────┬────────────┬────────────┐
│ Account              │ Debit      │ Credit     │
├──────────────────────┼────────────┼────────────┤
│ [Account #] [Name]   │ $X,XXX.XX  │            │
│ [Account #] [Name]   │            │ $X,XXX.XX  │
├──────────────────────┼────────────┼────────────┤
│ Total                │ $X,XXX.XX  │ $X,XXX.XX  │
└──────────────────────┴────────────┴────────────┘

Supporting Documentation:
□ [Document 1]
□ [Document 2]

Approval: _________________ Date: _________

Phase 3: Reconciliation & Review (Day 3-5)

Account Reconciliation Framework

RECONCILIATION REQUIREMENT BY ACCOUNT TYPE:

HIGH RISK (Reconcile Every Month):
• Cash and bank accounts
• Accounts receivable
• Accounts payable
• Payroll liabilities
• Intercompany accounts
• Deferred revenue
• Debt accounts

MEDIUM RISK (Reconcile Monthly/Quarterly):
• Prepaids
• Fixed assets
• Accrued expenses
• Other current liabilities

LOWER RISK (Reconcile Quarterly/Annually):
• Equity accounts
• Accumulated depreciation
• Long-term assets/liabilities

Reconciliation Template

ACCOUNT RECONCILIATION
──────────────────────
Account: [#] [Name]
Period: [Month/Year]
Preparer: [Name]
Reviewer: [Name]

GL BALANCE: $______________

RECONCILING ITEMS:
┌─────────────────────────────┬────────────┬────────────┐
│ Description                 │ Add        │ Subtract   │
├─────────────────────────────┼────────────┼────────────┤
│ [Item 1]                    │ $          │ $          │
│ [Item 2]                    │ $          │ $          │
│ [Item 3]                    │ $          │ $          │
├─────────────────────────────┼────────────┼────────────┤
│ Total Adjustments           │ $          │ $          │
└─────────────────────────────┴────────────┴────────────┘

RECONCILED BALANCE: $______________
SUPPORTING BALANCE: $______________ (from sub-ledger/statement)

VARIANCE: $______________ (should be $0)

If variance exists:
□ Explained and documented
□ Adjustment required (JE# _____)

SIGN-OFF:
Prepared by: _________________ Date: _________
Reviewed by: _________________ Date: _________

Intercompany Reconciliation

INTERCOMPANY RECONCILIATION
───────────────────────────
Period: [Month/Year]

ENTITY PAIR: [Entity A] ↔ [Entity B]

Entity A Balance (Due To/From B): $______________
Entity B Balance (Due To/From A): $______________

DIFFERENCE: $______________

If difference exists:
□ Timing difference (transactions in transit)
□ Eliminated in consolidation
□ Requires adjustment

RECONCILING ITEMS:
[List transactions causing difference]

Action Required:
□ No action (timing)
□ Entity A to post JE
□ Entity B to post JE

Confirmed by Entity A: _________________ Date: _____
Confirmed by Entity B: _________________ Date: _____

Phase 4: Reporting & Sign-off (Day 5-7)

Flux Analysis (Variance Review)

FLUX ANALYSIS TEMPLATE
──────────────────────
Period: [Month/Year]

INCOME STATEMENT FLUX (vs Prior Month / vs Budget):

┌─────────────────────┬─────────┬─────────┬─────────┬────────────┐
│ Line Item           │ Actual  │ Compare │ Variance│ Explanation│
├─────────────────────┼─────────┼─────────┼─────────┼────────────┤
│ Revenue             │         │         │         │            │
│ COGS                │         │         │         │            │
│ Gross Profit        │         │         │         │            │
│ Operating Expenses  │         │         │         │            │
│ ...                 │         │         │         │            │
└─────────────────────┴─────────┴─────────┴─────────┴────────────┘

MATERIALITY THRESHOLD: $_______ or _____%

Items requiring explanation:
□ All variances > threshold documented
□ Unusual items flagged
□ Explanations approved by [role]

Close Sign-off Checklist

MONTH-END CLOSE SIGN-OFF
────────────────────────
Period: [Month/Year]
Close Date: [Date]

COMPLETION CONFIRMATION:
□ All journal entries posted
□ All reconciliations completed and reviewed
□ Intercompany balances confirmed
□ Flux analysis completed
□ Unusual items documented
□ Period closed in system

REVIEW & APPROVAL:
□ Financial statements reviewed
□ Key metrics reviewed
□ Variance explanations accepted
□ Ready for distribution

SIGN-OFF:
Controller: _________________ Date: _________
CFO: _________________ Date: _________

DISTRIBUTION:
□ Management financials distributed
□ Board package prepared (if applicable)
□ External reporting prepared (if applicable)

Close Ownership Matrix

CUSTOMIZATION REQUIRED:
┌─────────────────────────────────────────────────────────────────┐
│ CLOSE TASK OWNERSHIP                                            │
├─────────────────────────────┬──────────────┬───────────────────┤
│ Task                        │ Owner        │ Backup            │
├─────────────────────────────┼──────────────┼───────────────────┤
│ Bank reconciliation         │ ____________ │ ____________      │
│ AR close                    │ ____________ │ ____________      │
│ AP close                    │ ____________ │ ____________      │
│ Payroll close               │ ____________ │ ____________      │
│ Fixed assets                │ ____________ │ ____________      │
│ Revenue recognition         │ ____________ │ ____________      │
│ Intercompany                │ ____________ │ ____________      │
│ Consolidation               │ ____________ │ ____________      │
│ Flux analysis               │ ____________ │ ____________      │
│ Financial statements        │ ____________ │ ____________      │
│ Final review                │ ____________ │ ____________      │
└─────────────────────────────┴──────────────┴───────────────────┘

Dependencies Map

CLOSE DEPENDENCIES
──────────────────

Bank Rec ──────┐
               ├──▶ Cash accounts finalized
Credit Card ───┘

AR Close ──────┐
               ├──▶ Revenue finalized
Rev Rec ───────┘

AP Close ──────┐
               ├──▶ Expenses finalized
Expense Accruals┘

Payroll ───────┐
               ├──▶ Compensation finalized
Bonus Accrual ─┘

All Above ─────▶ Trial Balance ─────▶ Flux Analysis

Flux Analysis ─▶ Adjustments ─▶ Final TB ─▶ Financials

Financials ────▶ Management Review ─▶ Close Period

Handling Close Issues

Common Close Delays

Adjustment Protocol

POST-CLOSE ADJUSTMENT POLICY
────────────────────────────

Adjustments after close sign-off require:

MATERIALITY THRESHOLD: $_______ or _____%

UNDER THRESHOLD:
□ Record in current period
□ Document in next close package

OVER THRESHOLD:
□ Assess if prior period restatement needed
□ Document error and impact
□ Approval required: [Role]
□ May require reopening period

Close Metrics

Track Close Performance

CUSTOMIZATION REQUIRED:
┌─────────────────────────────────────────────┐
│ Your close targets:                         │
│                                             │
│ Days to soft close: ____                    │
│ Days to hard close: ____                    │
│ Target # adjustments: ____                  │
│ Materiality threshold: $____               │
└─────────────────────────────────────────────┘

Resources

references/

• account-reconciliation-guide.md — Detailed reconciliation procedures by account
• journal-entry-standards.md — JE documentation requirements
• close-troubleshooting.md — Common issues and solutions

scripts/

• close-status-tracker.py — Tracks close task completion

assets/

• close-checklist.xlsx — Complete close checklist template
• reconciliation-template.xlsx — Account reconciliation workbook
• close-calendar.xlsx — Close calendar generator