Month-end close checklist for accounting firms

1. Establish what the month should contain

List the actual sources for the client: bank and card accounts, cash records where relevant, sales channels, settlement providers, recurring contracts and external payroll.

Compare the expected period coverage with received records. A connected account with no September data is not evidence of zero September activity. A sales report missing the last three days is incomplete even if every received row was processed.

Capture newly opened accounts, new providers and changes in the business. Last month’s source list is a starting point, not proof of current completeness.

2. Use explicit reconciliation criteria

This is a bookkeeping close framework. Year-end financial statements and tax filings have additional requirements.

3. Resolve a finding through to the balance

A supplier account shows €300 unpaid. The €1,000 invoice received a €700 payment. The bank is fully reconciled, so checking it again will not explain the remaining payable.

The supplier’s €300 correction document was received but not applied to the invoice. After it is recorded and linked:

€1,000 invoice − €700 payment − €300 correction = €0.

The close evidence should show the correction’s accounting and VAT treatment, the invoice link and the new supplier balance. “Credit note uploaded” would describe only receipt of the document.

This is why the checks have an order. Bank agreement establishes the payment population; supplier reconciliation tests what those payments and corrections settled.

4. Classify what remains open

An invoice due next month can be correctly recognised and unpaid at month end. A provider reserve can remain an evidenced receivable. Neither needs to be forced to zero.

An unexplained clearing amount, a missing material invoice or an unresolved tax treatment is different. The next action must identify the missing evidence or required accounting decision.

For each remaining issue, retain the amount, effect, responsible person and deadline. A decision to leave a justified balance outstanding should explain that balance. It must not be used to waive mandatory controls or avoid a required correction.

5. Review the effect of changes

If a correction changes the journal after a balance or VAT check, revisit the affected check. A report produced before the correction no longer represents the final books.

Example: applying the €300 supplier reduction can change expenses, supplier liabilities and VAT. Rechecking only the supplier balance would miss the other effects.

The relevant control is therefore tied to a specific accounting version and date. That makes a later reviewer able to reconstruct what was actually reviewed.

6. Finish with a compact close record

A useful close record contains:

• Client, period and the date of the final review.
• Reconciled bank and control-account balances.
• References to workpapers and material decisions.
• Justified outstanding items and their follow-up.
• Final report and export versions, with receiving-system status where relevant.

Hans combines postings, settlement, workpapers and accountant-agent findings in the monthly workflow. The firm resolves professional questions and completes the relevant review before the controlled close. Final monthly books remain distinct from a filed return or completed annual accounts.

For an actual review sequence, see the monthly review in Hans. Before sending records onward, use the export and import checklist.