# Month-End Close Coordination Pack ## 1. Close Context and Assumptions This draft assumes a five-day close timetable for a small SaaS business preparing monthly management accounts. The checklist covers bank reconciliation, accounts receivable, deferred revenue, accounts payable cut-off, payroll accrual, expense accruals, prepayments, management accounts, variance commentary, and finance lead review. Assumptions: - Day 1 starts on the first working day after month end. - The finance team has at least one preparer and one reviewer. - Accounting system reports, bank statements, payroll reports, invoices, and revenue schedules are available. - Final accounting judgements and material estimates remain subject to qualified finance review. ## 2. Sequenced Close Checklist | Phase / Day | Task | Owner | Reviewer | Dependency | Evidence required | Risk | Due | Status | |---|---|---|---|---|---|---|---|---| | Day 1 morning | Lock prior-month sales and billing data | Revenue owner | Finance lead | Month-end billing complete | Billing report, invoice listing, deferred revenue export | High | Day 1 noon | Not started | | Day 1 morning | Import bank transactions | Finance assistant | Accountant | Bank feed available | Bank statement or bank export | Medium | Day 1 noon | Not started | | Day 1 afternoon | Complete bank reconciliation | Accountant | Finance lead | Bank import complete | Bank reconciliation file, unreconciled-items list, bank statement | High | Day 1 close | Not started | | Day 1 afternoon | AP invoice cut-off review | AP owner | Accountant | Supplier invoices received | AP listing, unmatched invoices, goods received notes where relevant | Medium | Day 1 close | Not started | | Day 2 morning | AR ageing and collectability review | AR owner | Accountant | Sales ledger updated | AR ageing, credit notes, doubtful debt notes | Medium | Day 2 noon | Not started | | Day 2 afternoon | Deferred revenue reconciliation | Revenue accountant | Finance lead | Billing data locked | Deferred revenue schedule, revenue recognition report, reconciliation to GL | High | Day 2 close | Not started | | Day 2 afternoon | Payroll accrual calculation | Payroll/HR owner | Accountant | Payroll report available | Payroll report, accrual calculation, approval note | High | Day 2 close | Not started | | Day 3 morning | Expense accruals and prepayments | Accountant | Finance lead | AP cut-off complete | Accrual schedule, prepayment schedule, journal support | Medium | Day 3 noon | Not started | | Day 3 afternoon | Post close journals | Accountant | Finance lead | Accruals, prepayments, payroll, revenue schedules ready | Journal listing, support, approval evidence | High | Day 3 close | Not started | | Day 4 morning | Balance sheet reconciliations | Accountant | Finance lead | Journals posted | Reconciliation files, GL listings, supporting schedules | High | Day 4 noon | Not started | | Day 4 afternoon | Draft management accounts | Finance lead | CFO / director | Reconciliations complete | P&L, balance sheet, cash report, KPI pack | High | Day 4 close | Not started | | Day 5 morning | Variance commentary | Finance lead | CFO / director | Draft management accounts ready | Budget vs actual report, commentary notes, query list | Medium | Day 5 noon | Not started | | Day 5 afternoon | Final finance lead review and sign-off | CFO / director | Board / management as applicable | Pack and commentary complete | Final pack, issue log, sign-off record | High | Day 5 close | Not started | ## 3. Dependencies and Critical Path Critical path: 1. Billing data must be locked before deferred revenue reconciliation. 2. Bank import must be completed before bank reconciliation. 3. AP cut-off must be completed before expense accruals and prepayments are finalized. 4. Payroll report must be available before payroll accrual can be posted. 5. Journals must be posted before reconciliations are reviewed. 6. Reconciliations must be completed before the management accounts pack is finalized. 7. Management accounts must be ready before variance commentary and final review. Highest delay risks: - Late billing corrections affecting deferred revenue. - Missing supplier invoices affecting AP cut-off. - Payroll data delays affecting accrual completeness. - Unreconciled bank items affecting cash reporting. ## 4. Evidence Requirements | Workstream | Minimum evidence | |---|---| | Bank | Bank statement, reconciliation, unreconciled-items explanation, reviewer sign-off. | | AR | AR ageing, credit note listing, doubtful debt assessment notes, material overdue balance explanations. | | Deferred revenue | Billing report, deferred revenue schedule, reconciliation to GL, explanation of reconciling items. | | AP cut-off | AP listing, invoices received after period end, unmatched invoice review, accrual decisions. | | Payroll accrual | Payroll report, accrual calculation, journal support, approval evidence. | | Accruals | Accrual schedule, basis of estimate, supporting invoice or contract evidence where available. | | Prepayments | Prepayment schedule, calculation period, release journal, review evidence. | | Management accounts | Final reports, variance commentary, issue log, finance lead sign-off. | ## 5. Review and Sign-Off Points - Preparer checks each reconciliation for completeness, old reconciling items, and agreement to the ledger. - Reviewer checks high-risk reconciliations before management accounts are finalized. - Finance lead reviews all journals above the agreed threshold. - CFO or director reviews the full pack, unresolved issues, and material judgements. - Final sign-off should include date, reviewer name, open issues, and reporting limitations. ## 6. Exception and Issue Log | Issue | Owner | Impact | Action | Due date | Escalation route | Status | |---|---|---|---|---|---|---| | Billing corrections received after data lock | Revenue owner | May affect revenue and deferred revenue | Confirm materiality and whether adjustment is required | Day 2 noon | Finance lead | Open | | Missing supplier invoices | AP owner | May understate expenses | Review post-month-end invoices and create accruals where appropriate | Day 3 noon | Accountant | Open | | Old unreconciled bank items | Accountant | May affect cash accuracy | Investigate and document items over threshold | Day 2 close | Finance lead | Open | ## 7. Overdue Follow-Up Messages ### Late task reminder Subject: Month-end close action overdue — [task name] Hi [Name], The month-end close task “[task name]” was due by [time/date] and is currently marked as overdue. Please confirm the current status, expected completion time, and whether anything is blocking completion. This task affects [dependent task/report], so an update is needed by [time]. Thanks, [Name] ### Missing evidence request Subject: Evidence needed for close task — [task name] Hi [Name], Please upload or send the evidence for “[task name]” so the review can be completed. The expected evidence is: [evidence list]. Please confirm once this is available or flag any issue preventing completion. Thanks, [Name] ### Escalation note Subject: Close risk escalation — [task / workstream] Hi [Name], I am escalating [task/workstream] because it remains incomplete and may delay the month-end reporting timetable. Current status: [status]. Blocker: [blocker]. Required action: [action]. Decision or support needed: [decision/support]. Please confirm the agreed next step by [time]. Thanks, [Name] ## 8. Close Status Summary Overall status: Amber until high-risk reconciliations, deferred revenue, and payroll accrual are completed and reviewed. Complete: - Not yet applicable at draft stage. Overdue: - To be updated daily during close. Blocked: - Any late payroll reports, billing corrections, missing supplier invoices, or bank-feed issues should be listed here. High-risk areas: - Deferred revenue. - Bank reconciliation. - Payroll accrual. - AP cut-off. - Management accounts review. Management attention needed: - Confirm close deadline and reviewer availability. - Agree escalation route for late data. - Confirm threshold for material variances requiring commentary. ## 9. Next-Cycle Improvements - Add a pre-close checklist for billing, AP, and payroll data readiness. - Use one central close tracker with owner, reviewer, due date, evidence link, and status. - Create standard evidence folders by month and workstream. - Add a daily close stand-up during Days 1 to 5. - Track recurring blockers and assign process owners for permanent fixes. ## 10. Disclaimer This pack is operational coordination guidance only. It does not replace qualified accounting, tax, audit, legal, or regulatory review. Material estimates, accounting judgements, statutory reporting, and formal financial statement sign-off should be reviewed by appropriately qualified personnel.