A clean, timely month-end close is the foundation of good financial reporting. Here's the process we use with every client — and how you can implement it.
If your monthly financial statements arrive three weeks after month-end — or you're not sure they're accurate when they do — you're making business decisions with stale, unreliable information. A disciplined month-end close process changes that. Here's how we approach it with every client.
The Close Calendar
A good month-end close follows a calendar, not a feeling. By the 3rd business day: bank statements are downloaded and reconciliation is started. By the 5th business day: all bank accounts are reconciled, credit card statements are matched, and any missing receipts are flagged. By the 8th business day: accounts receivable and payable are reviewed, accruals are posted, and a draft P&L is available. By the 10th business day: final financials are reviewed and distributed.
The Non-Negotiables
Every month-end close must include: complete bank reconciliations for every account, review of accounts receivable aging (anything over 60 days needs a follow-up plan), review of accounts payable to ensure nothing is past due, reconciliation of payroll to the general ledger, and a review of the balance sheet for any unusual balances.
Common Problems We Find
When we start working with a new client, the most common issues we find are: transactions coded to the wrong account (making the P&L unreliable), bank reconciliations that haven't been done in months, payroll that doesn't tie to the general ledger, and accruals that are missing (making expenses look lower than they actually are). None of these are catastrophic — but they all need to be fixed before you can trust your financials.
Why It Matters
Clean, timely financials aren't just good hygiene. They're the foundation of every good financial decision — pricing, hiring, capital allocation, loan applications. If you can't trust your numbers, you can't trust your decisions. If your month-end close process needs work, that's exactly the kind of problem AFD CFO Advisory was built to solve.
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AFD CFO Advisory works with business owners who are serious about financial clarity and growth. Let's start with a conversation.