Pre-Close (Last 2-3 Business Days of the Month) (+5)

Pre-Close (Last 2-3 Business Days of the Month)

• Send close calendar and deadline reminders to all contributors
• Confirm cut-off procedures with AP, AR, payroll, and treasury
• Verify all sub-systems are processing normally (ERP, payroll, banking)
• Complete preliminary bank reconciliation (all but last-day activity)
• Review open purchase orders for potential accrual needs
• Confirm payroll processing schedule aligns with close timeline
• Collect information for any known unusual transactions

Close Day 1 (T+1: First Business Day After Month-End)

• Confirm all sub-ledger modules have completed period-end processing
• Run AP accruals for goods/services received but not invoiced
• Post payroll entries and payroll accrual (if pay period straddles month-end)
• Record cash receipts and disbursements through month-end
• Post intercompany transactions and confirm with counterparties
• Complete bank reconciliation with final bank statement
• Run fixed asset depreciation
• Post prepaid expense amortization

Close Day 2 (T+2)

• Complete revenue recognition entries and deferred revenue adjustments
• Post all remaining accrual journal entries
• Complete AR subledger reconciliation
• Complete AP subledger reconciliation
• Record inventory adjustments (if applicable)
• Post FX revaluation entries for foreign currency balances
• Begin balance sheet account reconciliations

Close Day 3 (T+3)

• Complete all balance sheet reconciliations
• Post any adjusting journal entries identified during reconciliation
• Complete intercompany reconciliation and elimination entries
• Run preliminary trial balance and income statement
• Perform preliminary flux analysis on income statement
• Investigate and resolve material variances

Close Day 4 (T+4)

• Post tax provision entries (income tax, sales tax, property tax)
• Complete equity roll-forward (stock compensation, treasury stock)
• Finalize all journal entries — soft close
• Generate draft financial statements (P&L, BS, CF)
• Perform detailed flux analysis and prepare variance explanations
• Management review of financial statements and key metrics

Close Day 5 (T+5)

• Post any final adjustments from management review
• Finalize financial statements — hard close
• Lock the period in the ERP/GL system
• Distribute financial reporting package to stakeholders
• Update forecasts/projections based on actual results
• Conduct close retrospective — identify process improvements