# Monthly Financial Close

> A month-end close that reconciles accounts, books accruals, and produces a clean P&L and balance sheet on a predictable date.

**Category:** Finance

**When to use:** First week of each month, to close the prior month's books.

**Trigger:** The first business days of a new month

## Steps

1. Reconcile every bank and credit-card account to the statement.
2. Confirm all revenue is recognized in the correct period and deferred revenue is updated.
3. Book accruals and prepaid amortization for the month.
4. Review the expense ledger for miscoded or missing transactions.
5. Produce the P&L, balance sheet, and cash-flow statement and review variances against budget.
6. Lock the period and distribute the close package with a short variance commentary.

## Outputs

- Reconciled accounts
- A locked P&L, balance sheet, and cash-flow statement
- A variance commentary

## Tools

- Accounting system
- Bank feeds
- Spreadsheet

## Notes

Close on the same calendar day every month. A predictable close date is what lets the rest of the company plan around real numbers.

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Free SOP from the OrgTP Process Library — https://orgtp.com/process-templates/monthly-financial-close
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