Month-end close checklist, template, and complete guide for finance teams

The month-end close process is one of the most important accounting cycles in any organization. It ensures that financial records are accurate, complete, and up-to-date, which is critical for budgeting, forecasting, and compliance. 

However, this process can be time-consuming and prone to human error. That’s why having a well-structured month-end close checklist is essential. In this guide, we’ll walk through the close process, identify common mistakes, and share best practices to streamline your month-end close process.

What is the month-end close process?

The month-end close process is a monthly workflow where finance and accounting teams review, reconcile, and finalize financial transactions for the previous month. This ensures the company’s books are accurate and reflect all relevant income, expenses, and liabilities.

Typical activities during the month-end close include:

• Reconciling bank and credit card statements
• Posting journal entries
• Accruing expenses and deferred revenue
• Reviewing and finalizing the general ledger
• Generating key financial reports, such as the income statement and balance sheet

This monthly process is foundational for maintaining the integrity of financial data. A timely and accurate month-end close supports cash flow planning, informs strategic decision-making, and helps the company stay compliant with regulatory requirements. When executed consistently, the month-end close also reveals patterns that can be used to drive performance improvements and reduce operational risk.

The 7 most common month-end close mistakes

Even experienced finance teams can encounter pitfalls during the month-end closing process. Here are the seven most common month-end close mistakes that you should look out for:

Overreliance on manual processes

Manual entry and spreadsheet-based tracking are time-consuming and increase the risk of human errors. Automating month-end closing procedures, such as account reconciliations and financial report generation, can dramatically improve efficiency and accuracy.

Data inconsistencies and delays

When data sources aren’t regularly updated or synced across systems, discrepancies can slow down the month-end close process. Inconsistent formats, outdated entries, or missing documentation add to the challenge.

Undefined or unclear responsibilities

If team roles and responsibilities aren’t clearly assigned, important tasks can be duplicated or overlooked. This lack of ownership can delay the month-end close process and complicate issue resolution.

Poor interdepartmental coordination

Month-end close requires input from HR, payroll, procurement, and other teams. When there’s misalignment or poor communication, finance teams often lack the data they need on time.

Skipping or rushing the review process

Failing to review journal entries, account reconciliations, or variance analyses thoroughly can result in errors that carry over into future periods and affect audit readiness.

Inadequate documentation of adjustments

Adjusting entries without clear documentation makes it hard to track changes, especially during audits. It also hinders transparency and internal reviews.

Not learning from previous closes

Many teams repeat the same errors month after month. Without a post-close analysis to reflect on delays and issues, it’s hard to make real improvements.

Why a month-end close checklist is essential

A structured checklist is one of the most effective tools finance teams can use to manage the month-end closing process with accuracy, speed, and confidence.

A month-end close checklist:

• Ensures process consistency across teams: Brings structure and consistency, ensuring every step—from account reconciliations to financial reporting—is followed systematically 
• Increases transparency and accountability: Clarifies responsibilities, helps prevent duplicated work or missed tasks, and makes it easier to identify bottlenecks
• Reduces the risks of errors and omissions: Ensures key activities aren’t overlooked, minimizing the chances of reporting inaccuracies and improving audit readiness
• Shortens the overall close timeline: Helps finance teams close the books more efficiently when tasks are organized and tracked effectively
• Improves audit preparedness: Provides a record of completed tasks, supporting documentation, and approvals, making internal and external audits more straightforward
• Support continuous improvement: Creates a foundation for reviewing the process and implementing ongoing improvements

What to include in a month-end close checklist

A well-crafted month-end close checklist helps ensure nothing slips through the cracks. Below are the essential tasks your finance team should complete to close the books accurately and efficiently.

Reconcile bank and credit card statements

Ensure all transactions on bank and credit card statements align with the general ledger. Investigate and resolve any discrepancies to prevent reporting errors.

Record and post journal entries

Log all necessary journal entries, including recurring, adjusting, and reversing entries. Ensure entries are properly categorized and supported by documentation.

Accrue expenses and revenue

Accrue for outstanding expenses and earned but unrecorded revenue to ensure the financial statements accurately reflect the month’s financial activity.

Review accounts payable and accounts receivable

Confirm that all incoming and outgoing invoices are accounted for. Follow up on overdue invoices and ensure no duplicate payments have been made.

Verify payroll and benefits entries

Make sure payroll, bonuses, commissions, and benefits liabilities are recorded correctly, with adjustments for any off-cycle payments or corrections.

Reconcile fixed assets and inventory

Update the asset register with new purchases, disposals, and depreciation. Reconcile inventory balances and ensure any variances are investigated.

Perform budget vs. actual analysis

Compare actual performance against budgeted targets. Investigate major variances and document explanations to support strategic planning.

Update financial statements and reports

Generate updated versions of all financial statements, including the income statement, balance sheet, and cash flow report. Verify all figures and ensure financial reports are ready for leadership review.

Final review and approvals

Have senior finance personnel review the general ledger, journal entries, and financial statements. Obtain formal approvals before closing the books.

Archive and document supporting materials

Store all financial statements, account reconciliations, and supporting documentation in a centralized location. This ensures readiness for audits and facilitates knowledge sharing.

Month-end close checklist template

Here’s a sample checklist to help guide your team through the month-end close process:

Streamline financial operations with Rippling

Rippling helps finance teams and accounting departments simplify and accelerate the month-end close process by bringing payroll software, spend management solutions, and time and attendance software data into a single, unified system.

With Rippling, you can:

• Automate payroll and benefits reconciliation: Rippling syncs payroll, tax withholdings, and benefits data directly into your general ledger, eliminating the need for manual entry and reducing reconciliation time.
• Streamline expense reporting and approvals: Track, review, and approve employee expenses in real time. Rippling Spend automatically categorizes transactions and enforces policy compliance.
• Sync real-time data across systems: Rippling integrates with your accounting software, ensuring financial data stays up-to-date without extra effort.
• Standardize and templatize journal entries: Save time by automating recurring entries and syncing approved data into your ledger with just a few clicks.
• Build custom financial reports and dashboards: Whether you're comparing actuals to budget or preparing for audits, Rippling makes it easy to generate dynamic, actionable financial reports.

By automating key parts of the month-end close process, Rippling helps reduce errors, enforce consistency, and give finance and accounting teams more time for strategic analysis.

Month-end close checklist FAQs

What are the month-end closing entries?

Month-end closing entries are the journal entries made to finalize a company’s financials for the period. These include accruals for expenses incurred but not paid, revenue recognition, depreciation, amortization, and adjustments for errors or reclassifications. They ensure that the accounting month-end close process checklist is comprehensive and accurate.

What is the month-end close process in FP&A?

In Financial Planning and Analysis (FP&A), the month-end close process involves collecting actuals from accounting, analyzing budget vs. actual performance, and using the insights to inform forecasting, financial modeling, and strategic planning.

What is the difference between month-end and year-end close?

Both involve reconciling accounts and finalizing financial data, but the year-end close process is more extensive. It includes additional procedures like annual reporting, tax filings, external audits, and closing temporary accounts. The month-end closing checklist is often a subset of the broader year-end close process.

How long should a month-end close take?

An efficient month-end close process should take 3 to 5 business days. However, depending on the size and complexity of the organization—and how much of the month-end close process is automated—it may take longer. Adopting an accounting month-end close checklist and leveraging automation tools can significantly shorten the timeline.

This blog is based on information available to Rippling as of July 3, 2025.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.