Generate a month-end close checklist

intermediateClaude SonnetFinanceAccountingmonth-end-closeaccountingchecklistcontrollerprocess

Use case

Use this prompt to create or refresh your month-end close checklist at the start of each period. A well-structured close checklist reduces errors, shortens close timelines, and ensures consistent handoffs between team members. Customize it for your company's accounting systems, transaction volume, and reporting requirements.

The prompt

You are a Controller or senior accountant building a month-end close checklist for your finance team.

Context:
- Company: {{company_name}}
- Accounting systems: {{accounting_systems}} (e.g., QuickBooks, NetSuite, Xero, Sage)
- Company type: {{company_type}} (e.g., SaaS, e-commerce, services, manufacturing)
- Team size: {{team_size}} (number of people involved in close)
- Close deadline: {{close_deadline}} (target days after month end, e.g., business day 5)
- Key transaction types: {{transaction_types}} (revenue recognition method, payroll frequency, major vendor categories)
- Reporting deliverables: {{reporting_deliverables}} (what's produced at close: board pack, investor update, lender reporting)
- Known pain points in current close: {{pain_points}} (optional — areas where errors or delays commonly occur)

Generate a month-end close checklist organized by day and category:

## Pre-Close Preparation (Day -2 to Day 0)
Tasks that should be completed before month-end or on the last day of the month to enable a fast close.

## Day 1–2: Transaction Processing and Sub-Ledger Close
- Accounts receivable close tasks
- Accounts payable close tasks
- Payroll and compensation entries
- Revenue recognition entries (with note on method: subscription, milestone, time-based)
- Bank and credit card transaction coding

## Day 2–3: Reconciliations
- Bank reconciliations (list each account)
- Credit card reconciliations
- AR aging review and bad debt assessment
- AP aging review
- Intercompany reconciliation (if applicable)
- Deferred revenue reconciliation (for subscription companies)
- Prepaid and accrued expenses

## Day 3–4: Journal Entries and Adjustments
- Standard recurring journal entries
- Accruals (payroll, benefits, rent, professional fees)
- Depreciation and amortization
- Stock-based compensation expense
- Tax provisions or estimates

## Day 4–5: Review and Reporting
- P&L flux analysis (explain significant variances vs. prior month and budget)
- Balance sheet review
- Financial statement tie-out
- Management reporting package preparation
- Final sign-off and close certification

For each task, include:
- Responsible party (role, not name)
- System or tool used
- Deadline (business day number)
- Dependencies (what must be completed before this task)
- Common error or risk note (optional)

Variables

{{{{company_name}}}}Replace with your {{company name}}
{{{{accounting_systems}}}}Replace with your {{accounting systems}}
{{{{company_type}}}}Replace with your {{company type}}
{{{{team_size}}}}Replace with your {{team size}}
{{{{close_deadline}}}}Replace with your {{close deadline}}
{{{{transaction_types}}}}Replace with your {{transaction types}}
{{{{reporting_deliverables}}}}Replace with your {{reporting deliverables}}
{{{{pain_points}}}}Replace with your {{pain points}}

Example

Input

company_name: Anchor Analytics
accounting_systems: QuickBooks Online, Stripe (billing), Rippling (payroll), Expensify (expenses)
company_type: SaaS (subscription revenue, monthly and annual contracts)
team_size: 3 (Controller, Senior Accountant, AP/AR Specialist)
close_deadline: Business Day 5
transaction_types: Subscription revenue (monthly and annual, ASC 606 straight-line recognition), semi-monthly payroll, SaaS vendor subscriptions, one-time professional services invoices
reporting_deliverables: Monthly finance package (P&L, balance sheet, cash flow, KPI dashboard) for executive team; quarterly board packet
pain_points: Deferred revenue reconciliation takes longer than expected; expense report approvals from managers are frequently late

Output

## Pre-Close Preparation (Day -2 to Day 0)

| Task | Owner | System | Deadline | Dependency | Risk Note |
|---|---|---|---|---|---|
| Send expense report submission reminder to all employees | AP/AR Specialist | Expensify / Rippling | Day -2 | None | Late submissions are the #1 cause of close delays — send reminder early |
| Pull Stripe monthly billing report and reconcile to QuickBooks invoices | Senior Accountant | Stripe + QBO | Day 0 (last day of month) | Stripe report available | Timing differences in Stripe payouts can create AR reconciliation errors |
| Verify all open purchase orders have been received or accrued | AP/AR Specialist | QuickBooks | Day 0 | Vendor confirmations | Unaccrued POs are a common source of expense understatement |
| Confirm payroll data for semi-monthly cycle is finalized | Controller | Rippling | Day 0 (if payroll falls in month) | Rippling payroll close | Payroll corrections after close require journal entry reversal |

## Day 1–2: Transaction Processing and Sub-Ledger Close

**Accounts Receivable**
| Task | Owner | System | Deadline | Dependency | Risk Note |
|---|---|---|---|---|---|
| Post all customer invoices generated in the month | AP/AR Specialist | Stripe / QBO | BD1 | Stripe billing report | Ensure annual contract invoices are posted in full even if recognized ratably |
| Apply all payments received to open invoices | AP/AR Specialist | QBO | BD1 | Bank feed current | Unapplied payments distort AR aging |
| Calculate deferred revenue for annual contracts | Senior Accountant | QBO / spreadsheet | BD2 | Invoice posting complete | Most error-prone step — verify each annual contract's recognized vs. deferred split |

**Accounts Payable**
| Task | Owner | System | Deadline | Dependency |
|---|---|---|---|---|
| Process all approved expense reports | AP/AR Specialist | Expensify / QBO | BD1 | Manager approvals received |
| Code and post all vendor invoices received through month-end | AP/AR Specialist | QBO | BD1 | Invoices collected |
| Accrue for invoices not yet received (known outstanding amounts) | Senior Accountant | QBO | BD2 | AP coding complete |

**Payroll and Compensation**
| Task | Owner | System | Deadline | Dependency |
|---|---|---|---|---|
| Import Rippling payroll journal entry into QuickBooks | Senior Accountant | Rippling / QBO | BD1 | Rippling payroll finalized |
| Accrue for unpaid payroll days (if payroll period crosses month-end) | Senior Accountant | QBO | BD2 | Payroll schedule confirmed |
| Post employer benefits and payroll tax accruals | Senior Accountant | QBO | BD2 | Payroll JE posted |

**Revenue Recognition**
| Task | Owner | System | Deadline | Dependency |
|---|---|---|---|---|
| Run deferred revenue waterfall model for all active annual contracts | Senior Accountant | Spreadsheet | BD2 | Invoice list current |
| Post monthly revenue recognition journal entry (deferred → recognized) | Senior Accountant | QBO | BD2 | Waterfall model complete |
| Verify monthly subscription revenue matches Stripe MRR report | Controller | Stripe / QBO | BD2 | Stripe report pulled |

## Day 2–3: Reconciliations

| Reconciliation | Owner | System | Deadline | Risk Note |
|---|---|---|---|---|
| Bank reconciliation — operating account | Senior Accountant | QBO | BD3 | Clear all timing differences; escalate any items >$1K unresolved |
| Bank reconciliation — payroll account | Senior Accountant | QBO + Rippling | BD3 | Verify payroll funding transfers tie |
| Credit card reconciliation (all cards) | AP/AR Specialist | Expensify / QBO | BD3 | Require manager approval on any uncoded transactions before posting |
| Deferred revenue reconciliation | Senior Accountant | QBO vs. spreadsheet | BD3 | This is the highest-risk reconciliation — Controller review required |
| AR aging review — flag accounts >60 days | AP/AR Specialist | QBO | BD3 | Confirm bad debt reserve calculation |
| Prepaid expenses schedule | Senior Accountant | Spreadsheet | BD3 | Ensure new prepaid items are added to schedule |

## Day 3–4: Journal Entries and Adjustments

| Journal Entry | Owner | System | Deadline |
|---|---|---|---|
| Depreciation and amortization (fixed asset schedule) | Senior Accountant | QBO | BD4 |
| Stock-based compensation expense (from cap table model) | Controller | Spreadsheet / QBO | BD4 |
| Rent straight-line adjustment (if applicable) | Senior Accountant | QBO | BD4 |
| Professional fees accrual (legal, audit, consultants not yet invoiced) | Controller | QBO | BD4 |
| Software subscriptions accrual (estimated if not invoiced) | AP/AR Specialist | QBO | BD4 |

## Day 4–5: Review and Reporting

| Task | Owner | Deadline |
|---|---|---|
| P&L flux analysis: explain all variances >$10K vs. prior month | Controller | BD4 |
| Balance sheet review: verify all accounts have explanations | Controller | BD4 |
| Financial statement tie-out (P&L, BS, cash flow statement agree) | Controller | BD5 |
| Prepare monthly finance package (P&L, BS, cash flow, KPIs) | Senior Accountant | BD5 |
| Controller sign-off and close declaration | Controller | BD5 |
| Distribute finance package to executive team | Controller | BD5 |

Tips for best results

1The deferred revenue reconciliation is the highest-risk step for SaaS companies — it touches every active contract and is manually intensive. Build a contract-by-contract waterfall model rather than a top-down estimate to catch errors.
2Assign ownership by role, not name. When someone is out, the checklist should still be executable by their backup without having to figure out who does what.
3The expense report timing problem is universal — the fix is a hard cutoff communicated two days before month-end, with a clear policy that late submissions are processed in the following month. One painful cycle usually changes behavior.
4The flux analysis (explain variances vs. prior month) is a quality gate, not a reporting requirement. Any P&L line that moves more than 10% or $10K and can't be explained in one sentence is a sign something was posted incorrectly.
5Track your close timeline each month: what was the actual close day vs. target? A close that's consistently 1–2 days late tells you where to look for process inefficiency.

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Use case

You are a Controller or senior accountant building a month-end close checklist for your finance team. Context: - Company: {{company_name}} - Accounting systems: {{accounting_systems}} (e.g., QuickBooks, NetSuite, Xero, Sage) - Company type: {{company_type}} (e.g., SaaS, e-commerce, services, manufacturing) - Team size: {{team_size}} (number of people involved in close) - Close deadline: {{close_deadline}} (target days after month end, e.g., business day 5) - Key transaction types: {{transaction_types}} (revenue recognition method, payroll frequency, major vendor categories) - Reporting deliverables: {{reporting_deliverables}} (what's produced at close: board pack, investor update, lender reporting) - Known pain points in current close: {{pain_points}} (optional — areas where errors or delays commonly occur) Generate a month-end close checklist organized by day and category: ## Pre-Close Preparation (Day -2 to Day 0) Tasks that should be completed before month-end or on the last day of the month to enable a fast close. ## Day 1–2: Transaction Processing and Sub-Ledger Close - Accounts receivable close tasks - Accounts payable close tasks - Payroll and compensation entries - Revenue recognition entries (with note on method: subscription, milestone, time-based) - Bank and credit card transaction coding ## Day 2–3: Reconciliations - Bank reconciliations (list each account) - Credit card reconciliations - AR aging review and bad debt assessment - AP aging review - Intercompany reconciliation (if applicable) - Deferred revenue reconciliation (for subscription companies) - Prepaid and accrued expenses ## Day 3–4: Journal Entries and Adjustments - Standard recurring journal entries - Accruals (payroll, benefits, rent, professional fees) - Depreciation and amortization - Stock-based compensation expense - Tax provisions or estimates ## Day 4–5: Review and Reporting - P&L flux analysis (explain significant variances vs. prior month and budget) - Balance sheet review - Financial statement tie-out - Management reporting package preparation - Final sign-off and close certification For each task, include: - Responsible party (role, not name) - System or tool used - Deadline (business day number) - Dependencies (what must be completed before this task) - Common error or risk note (optional)

Variables

{{{{company_name}}}}Replace with your {{company name}}

{{{{accounting_systems}}}}Replace with your {{accounting systems}}

{{{{company_type}}}}Replace with your {{company type}}

{{{{team_size}}}}Replace with your {{team size}}

{{{{close_deadline}}}}Replace with your {{close deadline}}

{{{{transaction_types}}}}Replace with your {{transaction types}}

{{{{reporting_deliverables}}}}Replace with your {{reporting deliverables}}

{{{{pain_points}}}}Replace with your {{pain points}}

Example

Input

company_name: Anchor Analytics
accounting_systems: QuickBooks Online, Stripe (billing), Rippling (payroll), Expensify (expenses)
company_type: SaaS (subscription revenue, monthly and annual contracts)
team_size: 3 (Controller, Senior Accountant, AP/AR Specialist)
close_deadline: Business Day 5
transaction_types: Subscription revenue (monthly and annual, ASC 606 straight-line recognition), semi-monthly payroll, SaaS vendor subscriptions, one-time professional services invoices
reporting_deliverables: Monthly finance package (P&L, balance sheet, cash flow, KPI dashboard) for executive team; quarterly board packet
pain_points: Deferred revenue reconciliation takes longer than expected; expense report approvals from managers are frequently late

Output

## Pre-Close Preparation (Day -2 to Day 0)

| Task | Owner | System | Deadline | Dependency | Risk Note |
|---|---|---|---|---|---|
| Send expense report submission reminder to all employees | AP/AR Specialist | Expensify / Rippling | Day -2 | None | Late submissions are the #1 cause of close delays — send reminder early |
| Pull Stripe monthly billing report and reconcile to QuickBooks invoices | Senior Accountant | Stripe + QBO | Day 0 (last day of month) | Stripe report available | Timing differences in Stripe payouts can create AR reconciliation errors |
| Verify all open purchase orders have been received or accrued | AP/AR Specialist | QuickBooks | Day 0 | Vendor confirmations | Unaccrued POs are a common source of expense understatement |
| Confirm payroll data for semi-monthly cycle is finalized | Controller | Rippling | Day 0 (if payroll falls in month) | Rippling payroll close | Payroll corrections after close require journal entry reversal |

## Day 1–2: Transaction Processing and Sub-Ledger Close

**Accounts Receivable**
| Task | Owner | System | Deadline | Dependency | Risk Note |
|---|---|---|---|---|---|
| Post all customer invoices generated in the month | AP/AR Specialist | Stripe / QBO | BD1 | Stripe billing report | Ensure annual contract invoices are posted in full even if recognized ratably |
| Apply all payments received to open invoices | AP/AR Specialist | QBO | BD1 | Bank feed current | Unapplied payments distort AR aging |
| Calculate deferred revenue for annual contracts | Senior Accountant | QBO / spreadsheet | BD2 | Invoice posting complete | Most error-prone step — verify each annual contract's recognized vs. deferred split |

**Accounts Payable**
| Task | Owner | System | Deadline | Dependency |
|---|---|---|---|---|
| Process all approved expense reports | AP/AR Specialist | Expensify / QBO | BD1 | Manager approvals received |
| Code and post all vendor invoices received through month-end | AP/AR Specialist | QBO | BD1 | Invoices collected |
| Accrue for invoices not yet received (known outstanding amounts) | Senior Accountant | QBO | BD2 | AP coding complete |

**Payroll and Compensation**
| Task | Owner | System | Deadline | Dependency |
|---|---|---|---|---|
| Import Rippling payroll journal entry into QuickBooks | Senior Accountant | Rippling / QBO | BD1 | Rippling payroll finalized |
| Accrue for unpaid payroll days (if payroll period crosses month-end) | Senior Accountant | QBO | BD2 | Payroll schedule confirmed |
| Post employer benefits and payroll tax accruals | Senior Accountant | QBO | BD2 | Payroll JE posted |

**Revenue Recognition**
| Task | Owner | System | Deadline | Dependency |
|---|---|---|---|---|
| Run deferred revenue waterfall model for all active annual contracts | Senior Accountant | Spreadsheet | BD2 | Invoice list current |
| Post monthly revenue recognition journal entry (deferred → recognized) | Senior Accountant | QBO | BD2 | Waterfall model complete |
| Verify monthly subscription revenue matches Stripe MRR report | Controller | Stripe / QBO | BD2 | Stripe report pulled |

## Day 2–3: Reconciliations

| Reconciliation | Owner | System | Deadline | Risk Note |
|---|---|---|---|---|
| Bank reconciliation — operating account | Senior Accountant | QBO | BD3 | Clear all timing differences; escalate any items >$1K unresolved |
| Bank reconciliation — payroll account | Senior Accountant | QBO + Rippling | BD3 | Verify payroll funding transfers tie |
| Credit card reconciliation (all cards) | AP/AR Specialist | Expensify / QBO | BD3 | Require manager approval on any uncoded transactions before posting |
| Deferred revenue reconciliation | Senior Accountant | QBO vs. spreadsheet | BD3 | This is the highest-risk reconciliation — Controller review required |
| AR aging review — flag accounts >60 days | AP/AR Specialist | QBO | BD3 | Confirm bad debt reserve calculation |
| Prepaid expenses schedule | Senior Accountant | Spreadsheet | BD3 | Ensure new prepaid items are added to schedule |

## Day 3–4: Journal Entries and Adjustments

| Journal Entry | Owner | System | Deadline |
|---|---|---|---|
| Depreciation and amortization (fixed asset schedule) | Senior Accountant | QBO | BD4 |
| Stock-based compensation expense (from cap table model) | Controller | Spreadsheet / QBO | BD4 |
| Rent straight-line adjustment (if applicable) | Senior Accountant | QBO | BD4 |
| Professional fees accrual (legal, audit, consultants not yet invoiced) | Controller | QBO | BD4 |
| Software subscriptions accrual (estimated if not invoiced) | AP/AR Specialist | QBO | BD4 |

## Day 4–5: Review and Reporting

| Task | Owner | Deadline |
|---|---|---|
| P&L flux analysis: explain all variances >$10K vs. prior month | Controller | BD4 |
| Balance sheet review: verify all accounts have explanations | Controller | BD4 |
| Financial statement tie-out (P&L, BS, cash flow statement agree) | Controller | BD5 |
| Prepare monthly finance package (P&L, BS, cash flow, KPIs) | Senior Accountant | BD5 |
| Controller sign-off and close declaration | Controller | BD5 |
| Distribute finance package to executive team | Controller | BD5 |

Tips for best results

1The deferred revenue reconciliation is the highest-risk step for SaaS companies — it touches every active contract and is manually intensive. Build a contract-by-contract waterfall model rather than a top-down estimate to catch errors.

2Assign ownership by role, not name. When someone is out, the checklist should still be executable by their backup without having to figure out who does what.

3The expense report timing problem is universal — the fix is a hard cutoff communicated two days before month-end, with a clear policy that late submissions are processed in the following month. One painful cycle usually changes behavior.

4The flux analysis (explain variances vs. prior month) is a quality gate, not a reporting requirement. Any P&L line that moves more than 10% or $10K and can't be explained in one sentence is a sign something was posted incorrectly.

5Track your close timeline each month: what was the actual close day vs. target? A close that's consistently 1–2 days late tells you where to look for process inefficiency.