/close-management

name: close-management
description: Manage the month-end close process with task sequencing, dependencies, and status tracking. Use when planning the close calendar, tracking close progress, identifying blockers, or sequencing close activities by day.
user-invocable: false

Close Management

**Important**: This skill assists with close management workflows but does not provide financial advice. All close activities should be reviewed by qualified financial professionals.

Month-end close checklist, task sequencing and dependencies, status tracking, and common close activities organized by day.

Month-End Close Checklist

Pre-Close (Last 2-3 Business Days of the Month)

• [ ] Send close calendar and deadline reminders to all contributors
• [ ] Confirm cut-off procedures with AP, AR, payroll, and treasury
• [ ] Verify all sub-systems are processing normally (ERP, payroll, banking)
• [ ] Complete preliminary bank reconciliation (all but last-day activity)
• [ ] Review open purchase orders for potential accrual needs
• [ ] Confirm payroll processing schedule aligns with close timeline
• [ ] Collect information for any known unusual transactions

Close Day 1 (T+1: First Business Day After Month-End)

• [ ] Confirm all sub-ledger modules have completed period-end processing
• [ ] Run AP accruals for goods/services received but not invoiced
• [ ] Post payroll entries and payroll accrual (if pay period straddles month-end)
• [ ] Record cash receipts and disbursements through month-end
• [ ] Post intercompany transactions and confirm with counterparties
• [ ] Complete bank reconciliation with final bank statement
• [ ] Run fixed asset depreciation
• [ ] Post prepaid expense amortization

Close Day 2 (T+2)

• [ ] Complete revenue recognition entries and deferred revenue adjustments
• [ ] Post all remaining accrual journal entries
• [ ] Complete AR subledger reconciliation
• [ ] Complete AP subledger reconciliation
• [ ] Record inventory adjustments (if applicable)
• [ ] Post FX revaluation entries for foreign currency balances
• [ ] Begin balance sheet account reconciliations

Close Day 3 (T+3)

• [ ] Complete all balance sheet reconciliations
• [ ] Post any adjusting journal entries identified during reconciliation
• [ ] Complete intercompany reconciliation and elimination entries
• [ ] Run preliminary trial balance and income statement
• [ ] Perform preliminary flux analysis on income statement
• [ ] Investigate and resolve material variances

Close Day 4 (T+4)

• [ ] Post tax provision entries (income tax, sales tax, property tax)
• [ ] Complete equity roll-forward (stock compensation, treasury stock)
• [ ] Finalize all journal entries — soft close
• [ ] Generate draft financial statements (P&L, BS, CF)
• [ ] Perform detailed flux analysis and prepare variance explanations
• [ ] Management review of financial statements and key metrics

Close Day 5 (T+5)

• [ ] Post any final adjustments from management review
• [ ] Finalize financial statements — hard close
• [ ] Lock the period in the ERP/GL system
• [ ] Distribute financial reporting package to stakeholders
• [ ] Update forecasts/projections based on actual results
• [ ] Conduct close retrospective — identify process improvements

Task Sequencing and Dependencies

Dependency Map

Tasks are organized by what must complete before the next task can begin:

LEVEL 1 (No dependencies — can start immediately at T+1):
├── Cash receipts/disbursements recording
├── Bank statement retrieval
├── Payroll processing/accrual
├── Fixed asset depreciation run
├── Prepaid amortization
├── AP accrual preparation
└── Intercompany transaction posting

LEVEL 2 (Depends on Level 1 completion):
├── Bank reconciliation (needs: cash entries + bank statement)
├── Revenue recognition (needs: billing/delivery data finalized)
├── AR subledger reconciliation (needs: all revenue/cash entries)
├── AP subledger reconciliation (needs: all AP entries/accruals)
├── FX revaluation (needs: all foreign currency entries posted)
└── Remaining accrual JEs (needs: review of all source data)

LEVEL 3 (Depends on Level 2 completion):
├── All balance sheet reconciliations (needs: all JEs posted)
├── Intercompany reconciliation (needs: both sides posted)
├── Adjusting entries from reconciliations
└── Preliminary trial balance

LEVEL 4 (Depends on Level 3 completion):
├── Tax provision (needs: pre-tax income finalized)
├── Equity roll-forward
├── Consolidation and eliminations
├── Draft financial statements
└── Preliminary flux analysis

LEVEL 5 (Depends on Level 4 completion):
├── Management review
├── Final adjustments
├── Hard close / period lock
├── Financial reporting package
└── Forecast updates

Critical Path

The critical path determines the minimum close duration. Typical critical path:

Cash/AP/AR entries → Subledger reconciliations → Balance sheet recs →
  Tax provision → Draft financials → Management review → Hard close

To shorten the close:

• Automate Level 1 entries (depreciation, prepaid amortization, standard accruals)
• Pre-reconcile accounts during the month (continuous reconciliation)
• Parallel-process independent reconciliations
• Set clear deadlines with consequences for late submissions
• Use standardized templates to reduce reconciliation prep time

Status Tracking and Reporting

Close Status Dashboard

Track each close task with the following attributes:

| Task | Owner | Deadline | Status | Blocker | Notes | |------|-------|----------|--------|---------|-------| | [Task name] | [Person/role] | [Day T+N] | Not Started / In Progress / Complete / Blocked | [If blocked, what's blocking] | [Any notes] |

Status Definitions

• **Not Started:** Task has not yet begun (may be waiting on dependencies)
• **In Progress:** Task is actively being worked on
• **Complete:** Task is finished and has been reviewed/approved
• **Blocked:** Task cannot proceed due to a dependency, missing data, or issue
• **A