Month-End Close for Insurance
Executes the monthly financial closing process including reconciliations, adjustments, and reporting.
Aligns with ASIC regulatory requirements, General Insurance Code of Practice, and AFSL obligations. Includes audit trail provisions.
Workflow Stages
Pre-Close Preparation
Complete all pending transactions, ensure all entries are posted, and run preliminary trial balance.
Inputs
- Claim cut-off checklist
- Pending invoice list
- Accrual schedule
Outputs
- All transactions posted
- Preliminary trial balance generated
- Outstanding items list for follow-up
Account Reconciliations
Reconcile all balance sheet accounts and investigate any discrepancies.
Inputs
- General ledger balances
- Bank statements
- Sub-ledger reports
Outputs
- Completed reconciliations
- Reconciling items identified
- Adjustment journal entries drafted
Decision Points
- • Are all reconciling items explained?
- • Are adjustments required?
Adjusting Entries
Prepare and post all necessary adjusting entries including accruals, deferrals, and corrections.
Inputs
- Reconciliation results
- Accrual calculations
- Error correction documentation
Outputs
- Adjusting entries posted
- Supporting documentation filed
- Adjusted trial balance generated
Financial Statement Preparation
Prepare the monthly financial statements including income statement, balance sheet, and cash flow.
Inputs
- Adjusted trial balance
- Financial statement templates
- Comparative period data
Outputs
- Draft financial statements
- Variance analysis
- Management discussion notes
Review and Approval
Finance leadership reviews the financial statements for accuracy and reasonableness.
Inputs
- Draft financial statements
- Variance analysis
- Key metric dashboard
Outputs
- Approved financial statements
- Review comments addressed
- Financial period closed in system
Decision Points
- • Are the financial statements materially accurate?
Distribution and Reporting
Distribute the approved financial statements to stakeholders and submit required reports.
Inputs
- Approved financial statements
- Distribution list
- Reporting calendar
Outputs
- Statements distributed to leadership
- Management reports published
- Close checklist archived
Frequently Asked Questions
Who has access to the financial statements?
Financial statements are distributed to the executive team, department heads, and board members. Access to detailed ledger data is limited to the finance team.
What is the target timeline for month-end close?
The target is to complete the close process within 5-10 business days after the month ends, with continuous improvement efforts to shorten the cycle.
What happens if an error is found after the period is closed?
Material errors discovered after close are corrected with adjusting entries in the current period with prior-period notation. Immaterial errors may be corrected in the following month.
Ready to implement this workflow in your business?
Our team can implement this workflow into your business operations with custom tools and training.