Monthly Financial Close Checklist for Manufacturing
A comprehensive checklist for closing the books at the end of each month, ensuring all financial transactions are recorded, reconciled, and reported accurately.
Designed to support ISO 9001 quality management, workplace health and safety regulations, and environmental compliance reporting under Australian standards.
Complete Checklist
- 1Reconcile all bank accounts against the accounting systemCritical
- 2Process all outstanding invoices and ensure revenue is recorded in the correct periodCritical
- 3Review and post all accounts payable transactions for the month
- 4Reconcile credit card statements and allocate all transactions
- 5Process depreciation entries for all fixed assets
- 6Review and adjust any prepaid expenses or accruals
- 7Reconcile payroll records against bank payments and superannuation contributionsCritical
- 8Review the aged receivables report and follow up on overdue accounts
- 9Review the aged payables report and schedule upcoming payments
- 10Check that all petty cash transactions are recorded and the float is reconciled
- 11Review the profit and loss statement against the budget for the monthCritical
- 12Review the balance sheet for any unusual balances or errors
- 13Prepare the monthly BAS or IAS lodgement if applicable
- 14Back up all financial data and store securely
- 15Distribute monthly financial reports to stakeholders
Frequently Asked Questions
When should the monthly financial close be completed?
Best practice is to complete the monthly close within five to ten business days after the end of the month. This allows time for all transactions to be received and processed while still providing timely information for decision-making. Establish a consistent close calendar and communicate deadlines to all contributors.
What reports should be produced as part of the monthly close?
At minimum, produce a profit and loss statement, balance sheet, and cash flow statement. Many businesses also prepare a budget variance report, aged receivables and payables summaries, and a management commentary highlighting key items. Tailor the reporting pack to what your stakeholders need to make informed decisions.
Should we use an accountant for the monthly close or handle it in-house?
Many small businesses handle the monthly close in-house using cloud accounting software like Xero or MYOB, with their accountant reviewing the results quarterly or annually. As the business grows or transactions become more complex, engaging a bookkeeper or accountant for the monthly close ensures accuracy and frees up the owner to focus on the business.
Need help implementing these checks into your daily operations?
Our team can build custom checklists integrated into your daily operations workflow.