Finance Department Month-End Closing Checklist

 Finance Department Month-End Closing Checklist


The month-end closing process is essential for ensuring financial accuracy, compliance, and internal control adherence.


1. General Ledger & Journal Entries

 • Post all journal entries, including adjustments and corrections.

 • Ensure all transactions are recorded and balanced.

 • Review the trial balance for any discrepancies.


2. Accounts Receivable

 • Reconcile accounts receivable balances with customer statements.

 • Review aging reports and follow up on overdue invoices.


3. Accounts Payable

 • Verify all supplier invoices are recorded and reconciled.

 • Ensure all payments are processed and liabilities accounted for.


4. Payroll & Employee Expenses

 • Confirm payroll entries are accurately posted.

 • Reconcile employee expense reports and clear outstanding advances.


5. Bank Reconciliations

 • Match bank statements with cashbook records.

 • Investigate and resolve any discrepancies.


6. Fixed Assets

 • Post depreciation entries.

 • Review asset additions, disposals, and impairments.


7. Inventory Management

 • Reconcile inventory balances with physical counts.

 • Post necessary inventory adjustments.


8. Prepaid Expenses

 • Allocate prepaid expenses to the appropriate period.

 • Review balances for accuracy.


9. Accruals & Provisions

 • Record all necessary accruals (e.g., utilities, rent).

 • Review provisions for adequacy and correctness.


10. Intercompany Transactions

 • Reconcile intercompany balances.

 • Eliminate intercompany transactions for consolidation.


11. Financial Statements Preparation

 • Prepare and review the income statement, balance sheet, and cash flow statement.

 • Validate completeness and accuracy of all financial data.


12. Variance Analysis

 • Compare actual results with budget and prior periods.

 • Investigate and document significant variances.


13. Tax Compliance

 • Ensure all tax-related entries are recorded (e.g., VAT, GST).

 • Prepare and file required tax returns.


14. Internal Controls & Approvals

 • Obtain necessary approvals for journal entries and reconciliations.

 • Ensure compliance with internal control policies.


15. Management Reporting

 • Compile reports for management review.

 • Highlight key insights and notable variances.


16. Year-to-Date Reconciliations

 • Reconcile year-to-date balances for all key accounts.

 • Verify cumulative totals align with expectations.


17. Period Closing

 • Lock the accounting period to prevent further postings.

 • Update the financial calendar for the upcoming period.


18. Final Review & Documentation

 • Ensure all supporting documents are organized and accessible.

 • Conduct a final review to confirm checklist completion.


This structured approach ensures a smooth month-end closing process, maintaining financial integrity and operational efficiency.

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