Month-End Close Checklist: How to Reconcile Balance Sheet Accounts Faster
A practical checklist for finance teams to close the books accurately every month, with a focus on prepayments, accruals, and GL reconciliation.
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Month-End Close5 min read23 March 2026
How to Review Balance Sheet Reconciliations as a Controller
What to look for when reviewing prepayment and accrual schedules prepared by your team — and the questions that surface the most common errors.
Reviewing balance sheet reconciliations is one of the most important parts of a controller's close process — and one of the easiest to rush when you are under time pressure. These are the questions and checks that catch the most common errors.
Does the Total Agree to the GL?
The first check is always: does the sum of individual items in the schedule agree to the GL closing balance for that account? If it does not, stop. Something is either missing from the schedule or incorrectly posted in the GL. This must be resolved before any further review.
Are There Stale Items?
Scan for prepayments where the coverage period has ended but the balance has not been fully amortized. Check for accruals that have been open for longer than expected — particularly any one-off accruals past their expected invoice date. Both indicate items that should have been closed but were not.
Have Adjustments Been Documented?
For any prepayment with an adjustment in the period, check that the reason is documented. Partial refunds should be supported by a credit note. Early terminations should reference a cancellation confirmation. Amount corrections should explain whether prior periods are affected.
Ask this question for every material adjustment: if an auditor asked me why this balance changed, could I answer with documentation? If not, the documentation needs to be completed before sign-off.
Does the Amortization Look Right?
Spot-check a few items. For a straight-line monthly prepayment, the monthly amount should be consistent. For a daily amortization, February should be slightly lower than March. Any irregular pattern warrants a closer look.
Are New Items This Period Reasonable?
Review any prepayments or accruals added in the current period. Check the coverage dates are plausible, the amounts match the invoice or estimate, and the GL accounts are correct. New items are where data entry errors most commonly occur.
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