Month-end close checklist (printable)

Month-end close

Work through the steps in order. Tick each one when it is done.

• 1. Cut-off: is everything for the month in?

  • All sales invoices, delivery notes and receipts for the month are entered and dated in the monthReports follow the document date, not the day it was typed.
  • All supplier bills and expenses for the month are entered, or accrued if the bill has not arrived
  • Drafts and unposted documents dated in the month are submitted or deleted
  • Open till or POS shifts are closed and day-end cash is counted

  Learn how: The month-end checklist and Day End

• 2. Cash, bank and petty cash

  • Bank statement reconciled: statement balance, less outstanding payments, plus deposits in transit, equals the book balance
  • Post-dated cheques due this month are cleared or marked bounced
  • Petty cash counted against the books, and any difference recorded and explained
  • Bank charges, interest and card fees are recorded

  Learn how: Cash, bank and petty cash checks

• 3. Customers, suppliers and stock

  • Receivables list adds up to the receivables line in the trial balanceA detailed list must agree to its control account.
  • Payables list adds up to the payables line in the trial balance
  • Goods received but not yet invoiced are listed and chased with suppliers
  • Stock valuation agrees to the inventory line in the trial balance; negative stock is investigated
  • A stock count is done (all items, or a rotating selection) and differences are posted
  • Overdue customers are reviewed and doubtful balances are flagged for follow-up

  Learn how: Customer, supplier and stock checks

• 4. Adjustments: costs in the month they belong to

  • Accruals posted for costs used but not yet billed (utilities, rent, services)Reverse them in the next month so the cost is not counted twice.
  • Prepayments and deferred income released for the month (insurance, annual fees, advance receipts)
  • Payroll for the month is calculated and posted in the right month, with advances recovered
  • Depreciation run for the monthRun it before you read the profit.

  Learn how: Accruals, prepayments and payroll

• 5. VAT

  • Every sales invoice and credit note for the period carries the right VAT treatment (standard, zero-rated, exempt)
  • Input VAT on purchases is supported by valid tax invoices, and reverse-charge items are recorded
  • Output and input VAT totals agree to the VAT accounts in the trial balance
  • The filing deadline for the return is in the diary and the payment is planned in the cash forecast

  Learn how: The VAT 201 return, box by box

• 6. Trial balance and statements

  • Trial balance: total debits equal total credits
  • Unusual balances are explained (a negative asset, a debit balance in a liability, an account that should be empty)A balanced trial balance does not prove the books are right.
  • Errors are corrected by reversing or amending the document, not by deleting it
  • Profit and loss compared with last month, line by line; large changes are explained
  • Balance sheet balances, and the cash flow agrees to the change in cash and bank

  Learn how: The Trial Balance and correcting errors

• 7. Lock and protect

  • The accountant or owner has reviewed and signed off the month
  • The period is locked so that nothing dated in it can be changed by accidentLock last: a lock also blocks late corrections.
  • A backup is made after the close and a copy is kept away from the computer
  • Reports are exported or printed for the file

  Learn how: Locking periods