Month-End Close Checklist for a Small Company: Ten Steps to Books You Can Trust
A month-end close is the routine that turns a month of bank lines, invoices and receipts into figures you can rely on. Done every month, it keeps the books current, catches mistakes while they're still easy to fix, and leaves the year end with very little to do. Here's a ten-step checklist for a small company, and a realistic timeline.
The checklist
- Get every statement. Bank accounts, payment platforms, company cards. With a daily feed most lines are already in; banks without one need the statement (see statement uploads).
- Book every line. Nothing left unexplained. Lines without a document go on a list to chase (see lost receipts).
- Reconcile every account to its statement balance, in its own currency (see bank reconciliation). Transfers between your own accounts should net to nil (see own-account transfers).
- Sales: every invoice issued in the month is booked, and every customer payment is matched to its invoice.
- Purchases: every supplier bill for the month is entered, including those that arrived late, and payments are matched to them.
- Payroll and MPF for the month are booked, with what's still to be paid shown as owing.
- Month-end adjustments: accruals for costs not yet billed, prepayments released, deferred revenue released, depreciation posted (see month-end adjustments and depreciation).
- Balances with people and related companies: the director's current account and any intercompany balances agreed (see the director's current account and intercompany balances).
- Review the figures. Compare the income statement with last month and the same month last year; look at the aged receivables and payables; investigate anything that moved unexpectedly. Clear any suspense balance.
- Report. Produce the month's statements and a short management pack for the directors (see the management pack).
A realistic timeline
| When | What |
|---|---|
| Days 1–3 | Bank and card statements in; all lines booked; receipts chased |
| Days 3–5 | Every bank and payment account reconciled; customer payments matched to invoices; supplier bills entered |
| Days 5–7 | Payroll and MPF; accruals, prepayments, deferred revenue; depreciation; intercompany and director's account agreed |
| Days 7–10 | Review: the income statement against last month, the aged receivables and payables, and anything unusual; then the management pack |
Ten working days is a comfortable target for a small company. Faster is possible when banks feed daily and receipts are captured as they're spent; slower usually means statements or receipts are waiting on someone.
Review questions that catch most mistakes
- Does every bank balance in the books equal the statement?
- Is any expense line much higher or lower than usual, and do I know why?
- Is anything sitting in a suspense or "sundry" account?
- Does the receivables total equal the list of unpaid invoices? And payables the list of unpaid bills?
- Has a regular cost, such as rent, salaries or a subscription, been missed or counted twice this month?
What you get from a monthly close
- Current figures for decisions, rather than last quarter's.
- A cash forecast you can trust, because it starts from reconciled balances (see the 13-week forecast).
- A quiet year end: twelve closed months, and the year end is the thirteenth (see the year-end checklist).
How Certanta does it
- The close, done for you each month on monthly plans: statements in, every account reconciled, adjustments posted.
- One to-do list for missing receipts and questions, so the close isn't held up waiting for answers.
- A human bookkeeper signs off every entry, and the month's statements and management pack follow.
- Ask about the month. "Why was profit lower than last month?" is a question for the AI assistant in your portal.
Frequently asked questions
What is a month-end close?
The routine that finalises a month's books: getting every statement, booking and reconciling every account, entering invoices, bills and payroll, posting accruals, prepayments and depreciation, reviewing the figures and producing the month's reports.
How long should a month-end close take?
For a small company, around ten working days after the month ends is a comfortable target. Daily bank feeds and receipts captured as they are spent make it faster.
What should be reconciled at month end?
Every bank and payment account and company card to its statement balance, transfers between your own accounts, receivables to the list of unpaid invoices, payables to the list of unpaid bills, and balances with directors and related companies.
What adjustments are made at month end?
Accruals for costs incurred but not yet billed, release of prepayments and deferred revenue, and depreciation on fixed assets.
Why close the books every month instead of once a year?
Because current figures support decisions, mistakes are easier to find while they are fresh, the cash forecast starts from reliable balances, and the year end becomes a short review instead of a reconstruction.
What should I review before the month is closed?
Bank balances against statements, unusual movements in income and expense lines against last month, any suspense or sundry balances, and the receivables and payables lists against their ledger totals.
A month-end close, every month, without you running it
Certanta closes your books each month: statements in, every account reconciled, adjustments posted, questions on one list, and a management pack at the end.
Open the demo See pricingThis article is general information about bookkeeping, not accounting advice for your company. The order and timing of a close depend on your business, your banks and your reporting deadlines.