month-end-close

Overview

Based on "Intermediate Accounting" by Kieso, Weygandt, and Warfield - the definitive reference for GAAP-compliant period-end accounting. Month-end close is not a checklist of tasks; it is a controlled process that ensures the financial statements for the period are complete, accurate, and consistent with prior periods.

The principle: close in the right order. Work from operational accounts inward to the general ledger. Reconcile before you close. Review before you certify.

Workflow

Step 1: Pre-close - collect and cut off

Before posting any entries, establish a clean cutoff.

Revenue cutoff date: [date] - no revenue after this date posts to the current period
AP cutoff: [date] - all invoices received by this date must be accrued if not yet posted
Payroll cutoff: [date] - confirm last pay date and any accrued but unpaid wages
Inventory cutoff: [date] - confirm no receiving or shipping activity after cutoff