Month-End Close Checklist: How to Reconcile Balance Sheet Accounts Faster

The month-end close is one of the most stressful recurring tasks for any finance team. Tight deadlines, interdependencies between accounts, and the ever-present risk of a last-minute journal entry that throws everything off. A clear, repeatable checklist is the single best thing you can do to make the process consistent and less painful.

Phase 1: Pre-Close Preparation (Days 1–2)

• Confirm all invoices for the month have been posted
• Chase any outstanding purchase orders that should have been invoiced
• Confirm payroll has been processed and posted correctly
• Review the bank statement and flag any unreconciled items
• Confirm any intercompany transactions are agreed

Phase 2: Accruals and Prepayments (Days 2–3)

This is typically where the most time is lost. Accruals and prepayments require judgment and are the most common source of period-end adjustments.

• Run your prepayment amortization and post the monthly journal entries
• Review open accruals from prior months — reverse any that should not carry forward
• Raise new accruals for costs incurred but not yet invoiced (utilities, professional fees, etc.)
• Reconcile the prepaid asset GL balance to your schedule of open prepayments
• Reconcile the accrued liabilities GL balance to your list of open accruals

Phase 3: Balance Sheet Reconciliations (Days 3–4)

• Fixed assets: confirm depreciation has run and agree net book value to the fixed asset register
• Accounts receivable: agree ledger to aged debtors report, assess bad debt provision
• Accounts payable: agree ledger to aged creditors report
• VAT / sales tax: reconcile control account to the return
• Bank accounts: complete bank reconciliation for all accounts
• Loans and borrowings: confirm outstanding balances and interest accruals

Phase 4: P&L Review (Day 4)

• Compare actuals to budget and prior month — investigate any significant variances
• Confirm revenue recognition is complete and appropriate
• Check payroll costs match the approved payroll summary
• Review discretionary spend against budget
• Confirm all accruals and prepayment entries are reflected

Phase 5: Final Sign-Off (Day 5)

• Lock the period in your accounting system to prevent further postings
• Circulate draft management accounts for review
• Obtain sign-off from the controller or CFO
• Archive the reconciliation workpapers
• Note any open items for follow-up in the next period

How to Speed Up the Process

The biggest time-saver in any close process is reducing manual reconciliation work. When prepayment amortization runs automatically and the reconciliation between your GL balance and supporting schedules is instant, you can focus your time on judgment calls rather than data-wrangling.

CloseKit automates the prepayment and accrual sections of this checklist — letting you see exactly what makes up each GL account balance on any date, with a full audit trail of every change.