The short answer
Close the month through evidence-based stages: collect inputs, reconcile balances, resolve or assess exceptions, review and release. Give every unresolved item an owner and next action. A completed checklist is useful only when another accountant can trace the balances and understand what remains open.
Define what closed means for the engagement
Agree the scope before building a checklist. Monthly bookkeeping, management reporting and VAT preparation have different deliverables. Write down which reconciliations are required, who reviews them, the document cut-off and what happens when material information is missing. A close status should have a meaning the whole team can explain.
Keep preparation and review distinct. In a small firm one person may perform both at different times, but the second pass should still inspect balances, unusual entries and unresolved questions. Avoid a checklist where every item can be completed without leaving evidence.
Close in the order dependencies allow
A reusable close sequence
| Stage | Work | Exit evidence |
|---|---|---|
| Completeness | Collect invoices, bank data and payroll inputs | Missing-item list and receipt record |
| Posting | Record and classify supported transactions | Current ledger and documented exceptions |
| Reconciliation | Bank, receivables, payables and relevant controls | Schedules explaining balances |
| Adjustments | Review cut-off, accruals and agreed estimates | Approved entries with supporting calculation |
| Review | Inspect changes and unresolved risks | Reviewer sign-off and action list |
| Release | Deliver agreed reports and prepare filing handoff | Final version and recipient record |
Reconcile the balance, not just the movement
For each bank account, confirm opening balance plus receipts less payments equals closing balance for the period. Then explain the difference between the statement and ledger balance. Reconcile payment processors and cards separately where they exist; an account with no movement can still carry an unexplained opening difference.
Review receivables and payables for old items, duplicated postings and unexplained credit balances. Match payroll control accounts to approved payroll and actual payments. The precise accounting treatment depends on the engagement and applicable rules; the checklist makes the question visible rather than prescribing an entry.
A missing document should leave a visible decision
A fictional client has sent all sales invoices but a supplier invoice supporting a €1,200 payment is missing. Record the payment and missing evidence on the exception list. The reviewer determines the permitted accounting treatment and whether reports can be released. Do not mark the document as received just because the bank line exists.
If release is appropriate, carry the unresolved item with an owner and target date. If it prevents release, state precisely what is blocked. 'Waiting on client' is too broad: 'supplier invoice for payment on 12 September; client finance contact to provide by Tuesday' gives the next person something to do.
Copy this close sign-off
Ready for review and release
Ready for review and release
- All relevant accounts and sources are included.
- Bank and applicable control balances are reconciled.
- Unusual movements and period cut-off have been reviewed.
- Adjustments have approval and supporting calculations.
- Every unresolved item has an owner, impact and next action.
- Final reports have a version, period, reviewer and approved recipients.
Measure days to reviewed release, not just days to first draft. Also track how often a closed month must be reopened and why. If speed improves while rework rises, the checklist may be rewarding premature completion.
Use the bank reconciliation guide for evidence gaps and the late-document workflow for items arriving after release. For Lithuanian VAT clients, hand the reviewed records into the separate FR0600 and i.SAF process. Claister organises the work; postings stay in the ledger.
Questions
A reviewer must assess its impact and the applicable requirements. Record the decision and any follow-up rather than applying one blanket rule.
Start with time to reviewed release and reopen rate together. A fast first draft alone can hide incomplete reconciliations and later corrections.
About this article
Author: Claister
Published by Claister, the company building the accounting practice management software discussed on this website.
Design partner: Natalija Miadzelic
Editorial review: Natalija Miadzelic · Accountant · Approved
Editorial policyAccounting processes: monthly work to annual accounts
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