Who this checklist is for
This month-end close checklist is for owners, finance heads and ops leads who want the books closed in days, not weeks. It is the list to run through before you start the close, so nothing is missed and the numbers you report are the numbers you can trust.
Work it top to bottom. The quick reconciliations come first, the heavier adjustments later, and the review at the end. Each item says why it matters and how to check it, so a new team member can follow the same close you would.
The month-end close checklist
Bank statements downloaded
Pull every bank statement for the period before you start. Without them the close is built on a feed that may be missing the last few days of transactions.
All accounts reconciled
Match each bank and wallet balance to the ledger. The closing balance in your books should equal the statement, to the rupee, for every account.
Petty cash counted
Physically count the cash on hand and tally it to the petty cash ledger. A gap here usually means a voucher was never entered.
Credit card bills matched
Reconcile each card statement against the expenses booked. Check that every charge has a bill and no personal spend has slipped in.
Pending invoices entered
Enter every sales invoice raised in the period, including the ones still sitting in email or a billing tool. Revenue is understated until they are in.
Draft bills approved
Clear the queue of draft or unapproved purchase bills. An approved bill hits the ledger, a draft does not, so your costs are wrong while they wait.
Customer payments applied
Apply received payments against the right invoices. Unapplied receipts leave both your cash and your receivables looking off.
Supplier statements reconciled
Compare each major supplier's statement to your payables. It is the fastest way to catch a missed bill or a double entry before it reaches the accounts.
Expense claims cleared
Process and post staff expense claims for the period. Claims left in a tray become next month's surprise and distort this month's costs.
Payroll journal posted
Post the full payroll journal, including salaries, deductions and employer contributions. Payroll is often the largest cost, so a missing journal skews everything.
GST figures reconciled
Match your output and input GST in the books to your returns and the portal. Differences found now are far cheaper to fix than at filing.
TDS entries checked
Verify TDS deducted and payable against the applicable rates and sections. A wrong deduction here flows straight into a notice later.
Prepaid expenses adjusted
Release the portion of prepaid costs like insurance or rent that belongs to this period. Otherwise an expense you paid up front sits unrecognised.
Accrued expenses booked
Book costs incurred but not yet billed, such as utilities or professional fees. Without accruals the month looks cheaper than it was.
Depreciation posted
Run depreciation for the period against your fixed asset register. Skipping it overstates both your profit and your asset values.
Inventory count matched
Reconcile the stock on the books to a physical or system count. A difference points to unrecorded sales, wastage or a data entry error.
Suspense account at zero
Clear everything parked in the suspense account to its correct head. A non-zero suspense balance means something is unexplained in the close.
Fixed assets updated
Record new asset purchases and any disposals in the register. The register and the ledger balance should agree before you close.
Trial balance reviewed
Read the trial balance line by line for anything that looks wrong: negative balances, odd spikes, accounts that should be nil. This is your last net before reporting.
Reports locked and backed up
Generate the P&L and balance sheet, lock the period so nobody back-dates an entry, and save a backup. A locked, backed-up close is one you can stand behind.
Questions about the month-end close
How long should a month-end close take?
What usually slows a close down?
Can the month-end close be automated?
Want your close to run itself?
Tell us how your month-end close works today and we will map it in a short digital audit, then show what reconciliations and reports could run on their own.
Part of our Business Process Automation hub. Start with our business automation services.