The Month-End Close Process: From Cutoff to Final Review
A practical guide to sequencing the month-end close from pre-close preparation through reconciliations, review, reporting, and approval.
Pre-close and transaction cutoff
The close begins before the period ends. Confirm the calendar, communicate cutoff expectations, assign preparers and reviewers, and identify source data that will arrive late. This is also the right time to check capacity and dependencies.
Parallel work and sequential work
Many reconciliations can proceed in parallel once the relevant source data is available. Final trial-balance review, variance analysis, and management reporting are more sequential because they depend on reviewed balances and posted adjustments.
- Parallel: bank, card, AP, AR, payroll, and fixed-asset reconciliations when inputs are ready.
- Dependent: intercompany reconciliation after counterpart balances are available.
- Sequential: final variance analysis after adjustments and reconciliations are reviewed.
- Sequential: final approval after open review items are resolved.
Adjustments, evidence, and review
Preparers should attach support to the work, document the accounting conclusion, and submit the task for review. Reviewers should approve or request changes in a queue so the decision and any follow-up remain connected to the task.
Reporting and final approval
After review, prepare the management package, confirm the close status by entity, document unresolved items, and obtain final approval. A post-close review should update the recurring calendar where timing, ownership, or evidence expectations were unclear.