vamseeachanta 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