Month-end close checklist for small and mid-size businesses

The 12-step checklist

1. Cut off: make sure all sales, purchases and expenses for the month are entered, and nothing from next month.
2. Bank and cash: reconcile every bank account, card and cash box to the statement, and clear unmatched items.
3. Payment gateways and POS: match gateway payouts, Tabby and Tamara settlements, and card terminal batches to sales.
4. Receivables: review the aged debtors list, chase overdue invoices, and record expected credit losses where needed.
5. Payables: match supplier statements, and accrue invoices for goods or services received but not yet billed.
6. Inventory: agree the stock valuation to the general ledger, and post count adjustments and landed costs.
7. Accruals and prepayments: rent, utilities, salaries, end-of-service benefits and insurance.
8. Fixed assets: record additions and disposals, and run depreciation.
9. Payroll: reconcile payroll to the general ledger, including GOSI in Saudi Arabia or social insurance and salary tax in Egypt.
10. VAT: reconcile the VAT control accounts to the draft return, and check e-invoice rejections.
11. Review: run the trial balance, compare to budget and last month, and investigate big movements.
12. Report and lock: issue the management pack (P&L, balance sheet, cash flow, KPIs), then lock the period in the system.

How to get to a five-day close

• Reconcile bank and gateways weekly, not monthly.
• Use bank feeds and reconciliation rules in Odoo or your ERP.
• Agree a close calendar: who does what, by which working day.
• Standardise recurring journals for accruals and depreciation.

Want this done for you? Our monthly accounting service includes a full close and management report every month. Terms you don't recognise? See the glossary.