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Streamline your month-end with a financial close checklist. Get step-by-step tips to organize tasks, reduce errors, and simplify your close process.
So you want to embrace automation in your finance department? I get it. But here's the hard truth: you can't automate a chaotic process. Applying technology to a disorganized workflow just makes the mess move faster. The essential first step is standardization. A financial close checklist is the tool that helps you document and streamline your current process, creating consistent, repeatable workflows. It's one of the best financial close tips I can give. Once you have this solid foundation, you can strategically introduce automation, freeing your team to focus on analysis and strategy instead of just data entry.
Think of a financial close checklist as your team's step-by-step guide to closing the books. It’s a structured tool that outlines every task that needs to be done to finalize your financial records for a specific period—whether that's a month, a quarter, or a year. The goal is to create a repeatable, organized process that ensures nothing gets missed. When every step is accounted for, you can produce accurate financial reports and maintain the integrity of your financial data.
This isn't just about ticking boxes. A well-designed checklist brings order to a complex process, helping your team work more efficiently and reducing the stress that often comes with closing deadlines. It creates a clear path from raw transaction data to polished financial statements, giving leaders the reliable information they need to make smart business decisions. Ultimately, it’s about building a foundation of trust in your numbers.
The financial close process is a critical step in accounting that makes sure your company's financial reports are correct. It involves recording all financial activities over a set period to get a clear picture of your business's performance. A checklist ensures every transaction is captured, every account is reconciled, and every report is verified. By standardizing the workflow, you minimize the risk of human error and guarantee that your financial statements accurately reflect the health of your business.
When you have a reliable process, you can move faster and with more confidence. Automating parts of your financial close can give you real-time visibility into your financial data, which means you're not just looking at historical performance but can also make proactive decisions.
A checklist does more than just keep your team organized; it’s a key tool for governance. It helps you make sure all necessary compliance tasks are completed, creating a clear and documented audit trail. When auditors come knocking, you can easily demonstrate that you have a controlled and consistent process for financial reporting. This preparation makes audits smoother and less disruptive for your team.
The information from a well-managed close process helps leaders understand the company's financial health and set strategic goals. Using financial close automation software can help your team complete the process with greater speed and accuracy. By automating manual tasks, you free up your finance professionals to focus on analysis and strategy instead of just data entry, ensuring you’re always ready for scrutiny.
While the month-end and year-end close processes both aim to produce accurate financial statements, they differ significantly in scope, complexity, and purpose. Think of the month-end close as a regular check-up. It’s a recurring process designed to give you a timely snapshot of your company's financial health, allowing you to spot trends and make informed decisions quickly. It’s a sprint that ensures the business is on track and that any issues are addressed before they snowball.
The year-end close, on the other hand, is the comprehensive annual physical. It’s a much more intensive process that finalizes the entire fiscal year's financial activity. This close involves not only all the steps of a typical month-end close but also includes additional year-end adjustments, such as calculating annual depreciation, finalizing inventory counts, and preparing for tax filings. Because it serves as the definitive record for the year, it requires a higher level of scrutiny and often involves external parties like auditors and tax advisors.
Ultimately, a successful year-end close is the product of twelve well-executed month-end closes. When you maintain a consistent and organized process each month, you build a reliable foundation that makes the annual close far less daunting. Having a standardized workflow and using tools to automate repetitive tasks throughout the year ensures that your data is clean and compliant, preventing major headaches when it’s time to finalize the books for auditors and stakeholders.
Think of your financial close checklist as a recipe. While you might add your own unique ingredients depending on your business, there are a few core components that every recipe needs to succeed. A thorough checklist ensures you cover all your bases, leaving no room for surprises when it's time to report your financials. These steps are the foundation for creating accurate, reliable financial statements that you can use to make strategic decisions and confidently pass any audit.
The main goal is to verify that the numbers in your accounting system accurately reflect what happened in the real world during that period. This involves everything from reconciling your bank accounts to making sure all your team's journal entries are correct. Each component acts as a checkpoint, helping you systematically confirm the integrity of your data. Neglecting any of these areas can lead to inaccuracies that snowball over time, making future closes even more difficult. A well-structured month-end close checklist is your best defense against chaos.
This is where you play detective, matching the balances in your accounting records to external sources like bank statements and credit card statements. The goal is to confirm that everything lines up. You’ll want to review all your balance sheet accounts, including cash, accounts receivable (money owed to you), accounts payable (money you owe), and fixed assets. This process is your first line of defense for catching errors, identifying fraudulent activity, and ensuring the numbers you’re reporting are grounded in reality. Think of it as a financial health check-up—it helps you spot and fix small issues before they become major problems.
Every transaction your business makes gets recorded as a journal entry. Before you can close the books, it’s essential to have a process for reviewing and approving all of them. This step acts as a critical internal control, providing a second set of eyes to ensure every entry is accurate, properly categorized, and has the necessary documentation. It’s not about micromanaging your team; it’s about safeguarding the integrity of your financial data. A formal approval process helps prevent errors and ensures that all financial activities are correctly documented before they are permanently logged in your general ledger.
This might sound like complex accounting jargon, but it’s a straightforward concept. Accruals and deferrals are adjustments made to record revenues and expenses in the period they were actually earned or incurred, not just when cash changes hands. For example, you might need to record an accrual for services your company received but hasn’t been billed for yet. A deferral would be recognizing subscription revenue over 12 months, even if the customer paid for the full year upfront. Properly handling these ensures your financial statements provide a more accurate picture of your company’s performance for the period.
This is one of the final and most important checks in the closing process. It involves a thorough reconciliation of your bank statements against your company’s cash records. You’re confirming that every deposit, withdrawal, and fee is accounted for, leaving no transaction unverified. This final review helps you catch any last-minute discrepancies, such as unprocessed checks or unexpected bank charges. Finalizing your bank statements gives you confidence that your cash balance is correct, which is a cornerstone of your entire financial report. It’s the last handshake to confirm your books are accurate and ready to be closed.
Your financial records should be a mirror of your physical operations. This step ensures that what’s on your balance sheet matches what’s in your warehouse or on your office floor. You’ll need to reconcile your fixed assets and inventory, which often involves conducting physical counts to confirm quantities and conditions. This process is vital for accurate financial reporting because it verifies the value of the assets your company owns. Catching discrepancies here—whether it’s missing inventory or a disposed asset still on the books—prevents your financial statements from being misleading and helps you maintain tighter control over your company’s resources.
Your team is your most valuable asset, and their compensation is often your largest expense. That’s why it’s so important to get payroll right. This part of the checklist involves a careful review to verify all payroll and benefits entries for the period. You’ll want to double-check salaries, hourly wages, commissions, bonuses, and any benefit contributions to ensure they are recorded accurately. This isn’t just about correct bookkeeping; it’s about maintaining compliance with labor regulations and, just as importantly, maintaining the trust of your employees. An accurate and timely payroll process is a cornerstone of a healthy company culture.
Every dollar needs to be accounted for, from large transfers between business units to the small bills in your petty cash box. First, you’ll need to count any physical cash your company holds and make sure it matches your records, documenting all small purchases. If your business has multiple entities, you also need to reconcile intercompany transactions. This means ensuring that loans, payments, or service charges between your different companies are properly recorded and balance each other out. This step is crucial for maintaining financial integrity and producing consolidated financial statements that are accurate and reliable.
This is where all your reconciliation work comes together. Once the underlying accounts are verified, it’s time to generate your preliminary financial statements. These core reports—the Profit and Loss (P&L) statement, the Balance Sheet, and the Cash Flow Statement—provide a comprehensive view of your company's financial performance and position. The P&L shows your profitability, the Balance Sheet gives a snapshot of your assets and liabilities, and the Cash Flow Statement tracks how cash moves through your business. These documents are the ultimate output of the close process, providing leaders with the critical information needed to make strategic decisions.
Staying compliant with tax regulations is non-negotiable, and the close process is the perfect time to ensure everything is in order. This step involves checking and approving all tax-related documents and liabilities. You’ll need to review sales tax collected, verify payroll tax withholdings, and make any necessary accruals for income taxes. Getting this right is essential for filing accurate tax returns and avoiding potential penalties or audits down the road. A systematic review during the close protects your business from financial risk and ensures you are meeting all your obligations to tax authorities in a timely manner.
At the end of the fiscal year, it’s time for a final reset. This step involves closing all your temporary accounts to prepare your books for the new year. Temporary accounts, which include all revenue, expense, and dividend accounts, need to have their balances transferred to a permanent equity account, typically retained earnings. This process resets their balances to zero, ensuring that your income statement for the upcoming year starts with a clean slate. It’s a fundamental bookkeeping procedure that ensures your financial reports for the new period only reflect that period’s activities, maintaining the integrity of your year-over-year reporting.
Even the most organized accounting teams can feel the month-end crunch. You start with the best intentions, but before you know it, you're chasing down numbers and working late to hit your deadline. If this sounds familiar, you're not alone. Unexpected issues pop up, delays happen, and the pressure mounts. The good news is that most of these challenges are common and, more importantly, can be addressed with the right strategies.
Understanding what’s holding you back is the first step toward a smoother, faster close. Most bottlenecks fall into three main categories: the constant pressure of tight deadlines, the inefficiencies of manual work, and the headaches caused by messy data. When you’re stuck in a cycle of correcting errors and hunting for information, you lose valuable time that could be spent on strategic analysis. By pinpointing these common roadblocks, you can start building a process that’s not just faster, but more reliable and less stressful for everyone involved. For more tips on streamlining your operations, you can find helpful articles on the HubiFi Insights blog.
The end of the month always seems to arrive faster than expected, bringing with it a mountain of tasks and a non-negotiable deadline. This pressure to close the books quickly can create a stressful environment where mistakes are more likely to happen. A small error made in a rush can lead to hours of rework, creating a domino effect that pushes every other task back. This cycle of rushing, making mistakes, and then scrambling to fix them is a major reason why so many finance teams feel perpetually behind during the close.
If your team is still leaning heavily on spreadsheets, you’re likely feeling the pain of manual work. The biggest delays in the close process often come from tasks like data entry and reconciliations. These manual close processes are not only time-consuming but also incredibly prone to human error. A simple copy-paste mistake or a typo in a formula can throw off an entire report, forcing your team to spend precious time hunting down the source of the discrepancy instead of moving forward. It’s a frustrating and inefficient way to work, and it’s one of the most common hurdles to a timely close.
Your financial reports are only as good as the data you put into them. When your team has to pull information from multiple, disconnected systems—like your CRM, payment gateway, and ERP—it’s easy for things to get messy. Disorganized data and a lack of standardization can significantly slow down the financial close. You might find yourself manually matching transactions or trying to make sense of conflicting reports. Without a single source of truth, your team spends more time validating data than analyzing it. This is where seamless integrations become critical for creating a clean, reliable data flow.
The real cost of a slow close isn't just measured in late nights; it's measured in dollars and missed opportunities. When your team spends the bulk of their time on manual tasks like data entry and reconciliations, you're paying for inefficiency. Think about the hours spent hunting down a single spreadsheet error or manually matching transactions from conflicting reports. These hours add up, directly impacting your bottom line through inflated labor costs. More importantly, this is time your skilled finance professionals could be spending on strategic analysis that drives growth. By implementing solutions like automated revenue recognition, you can reclaim those hours, reduce error rates, and shift your team’s focus from tedious validation to valuable insight.
Let’s be honest: the financial close can feel chaotic. When your team is juggling tight deadlines, manual data entry, and information from different systems, it’s easy for things to get messy. This is where a well-structured checklist becomes your most valuable tool. It’s more than just a to-do list; it’s a strategic framework that brings order, clarity, and consistency to one of your most critical business processes.
Think of it as the foundation for a smoother, faster, and more accurate close. By implementing a checklist, you’re not just organizing tasks—you’re actively solving the root causes of common close-related headaches. It helps you move from a reactive scramble to a proactive, controlled process, setting the stage for more advanced improvements like automation. A checklist transforms the close from a source of stress into a predictable and reliable operation.
A checklist creates a single source of truth for your closing process. Instead of relying on institutional knowledge or different team members doing things their own way, everyone follows the same steps in the same order, every single time. This consistency is crucial. Standardizing your financial close processes ensures that tasks are performed consistently, which makes automating your workflows much more straightforward and effective. It removes the guesswork, reduces the risk of missed steps, and makes it easier to train new team members. This isn't about being rigid; it's about building a reliable and efficient system that produces accurate results month after month.
When tasks are unclear, it’s easy for things to fall through the cracks. A checklist solves this by assigning clear ownership for every single item. Having a clear list and knowing who is responsible for each task—and by when—eliminates confusion and finger-pointing. This transparency allows managers to see the status of the close at a glance, identify bottlenecks before they become major delays, and offer support where it’s needed most. For team members, it clarifies their individual contributions and helps them understand how their work fits into the bigger picture, fostering a greater sense of responsibility and teamwork.
Many delays in the close process come from manual work like data entry and reconciliations, which are often prone to human error. A checklist helps minimize these mistakes by building systematic reviews directly into the workflow. For example, you can require a peer review for all journal entries or mandate that all bank accounts are reconciled before closing the books. This structured approach ensures that multiple checks and balances are in place, catching potential errors early. This systematic process is the first step toward a more robust system, where automated financial close processes can provide real-time visibility into your financial data and further reduce manual mistakes.
Creating a standardized checklist is the best way to bring order to the month-end chaos. It ensures everyone knows their role, deadlines are clear, and nothing slips through the cracks. Think of it as your roadmap to a smoother, faster close. A great checklist isn't just a to-do list; it’s a living document that evolves with your business. By breaking the process down into manageable phases—preparation, execution, and review—you can systematically tackle each part of the close. This approach not only reduces stress but also builds a repeatable, reliable process that delivers accurate financials every time. Let’s walk through how to structure your own checklist.
The smoothest closes start long before the last day of the month. Getting ahead of the game is all about proactive communication and system checks. A few days before the month ends, make sure all your financial systems—from accounting to billing—are synced and updated. This prevents last-minute data surprises. Send out friendly reminders to other department heads to submit any outstanding expense reports or invoices. It’s much easier to get what you need before they’re up against a hard deadline. Finally, map out a clear schedule, assign specific tasks to team members, and make sure everyone knows what’s expected of them. A little planning goes a long way in preventing a frantic scramble at the finish line.
This is where the main event happens. Start by recording all your income and ensuring every invoice for the month is accounted for. This step is critical for getting an accurate picture of your revenue. Next, it’s time to review and reconcile your key accounts. Go through your bank statements, accounts receivable, accounts payable, credit card statements, and fixed assets, making sure the numbers in your books match the reality. This is often the most time-consuming part, but it’s non-negotiable for accuracy. Once everything is reconciled and all journal entries are posted, you can generate your core financial statements, like the income statement and balance sheet. These reports are the official record of your company’s performance for the month.
Your work isn’t done once the statements are generated. The final phase is about understanding the story your numbers are telling and preparing for the future. First, update all your internal reporting dashboards and planning tools with the final, verified figures. Then, dig into any significant variances between your actual results and your budget. Being able to explain why certain numbers changed is crucial for strategic decision-making. Finally, hold a brief review with your team. Discuss what went well, where the bottlenecks were, and how you can make the process even better next month. This continuous improvement loop is what separates good finance teams from great ones and is a core part of our philosophy at HubiFi.
Creating a checklist is the first step, but making it truly effective requires a thoughtful approach. A great checklist isn’t just a list of tasks; it’s a dynamic tool that coordinates your team, clarifies responsibilities, and evolves with your business. By adopting a few key practices, you can transform your checklist from a simple guide into a powerful driver of efficiency and accuracy for your financial close. These strategies ensure your checklist works for you, not the other way around, making each closing period smoother than the last.
The financial close is often seen as the finance team’s responsibility, but the truth is, it’s a team sport. Your finance department relies on timely and accurate information from across the company—from sales providing final revenue numbers to HR submitting payroll details. If one department is late with their expense reports, it can create a domino effect that delays the entire process. To prevent this, bring leaders from other departments into the conversation. When they understand their role and the importance of their deadlines, you get better buy-in and a more collaborative closing process. You can find more tips for streamlining your operations in the HubiFi Blog.
A checklist without names and dates is just a wish list. To create real accountability, every single task needs a designated owner and a firm due date. The owner is the go-to person responsible for completing that item and answering any questions about it. This clarity eliminates confusion over who is supposed to do what. Setting specific deadlines for each step—not just the final close date—helps everyone manage their time and prevents a frantic rush at the end of the month. When your systems are connected, it's even easier for team members to complete their tasks on time. Seeing how different integrations with HubiFi can support this process is a great next step.
Your business isn’t static, and your financial close checklist shouldn’t be either. Treat it as a living document that you refine over time. After each close, hold a brief review with your team to discuss what went well and identify any bottlenecks or recurring issues. Were there tasks that consistently took longer than expected? Were there any surprise errors? Tracking these patterns helps you pinpoint areas for improvement. This regular review process is the perfect opportunity to find tasks that are ripe for automation, which can free up your team to focus on more strategic work. If you keep hitting the same roadblocks, it might be time to schedule a demo to see how automation can help.
Waiting until the last day of the month to start your close is a recipe for stress. The smoothest closes begin long before the final deadline. Getting ahead of the game is all about proactive communication and system checks. A few days before the month ends, take the time to ensure all your financial systems—from your CRM to your billing platform—are synced and updated. This simple step helps prevent last-minute data surprises that can derail your entire schedule. It’s also the perfect time to send reminders to other departments for any outstanding invoices or expense reports, ensuring you have all the necessary information before the pressure is on.
Instead of treating the close as one massive project, break it down into smaller, more manageable pieces throughout the month. By conducting weekly "mini-closes" for tasks like bank reconciliations, you can catch and correct discrepancies early, before they snowball into bigger problems. A mid-close check-in meeting is also a great way to track progress and address any roadblocks as a team. This regular review process is the perfect opportunity to find tasks that are ripe for automation, which can free up your team to focus on more strategic work. If you keep hitting the same roadblocks, it might be time to schedule a demo to see how automation can help.
This might seem like a small detail, but it’s a game-changer for accuracy and efficiency. Make it a rule that no journal entry is posted without the relevant supporting documentation attached directly to it—whether that’s an invoice, a contract, or a receipt. This step acts as a critical internal control, providing a second set of eyes to ensure every entry is accurate, properly categorized, and has the necessary documentation. It creates a crystal-clear audit trail, which will make your auditors happy and save your team countless hours of digging through files and emails to justify a transaction months later. It’s a simple habit that pays huge dividends in transparency and trust.
The finance team often gets bogged down with ad-hoc requests from other department heads asking for budget updates or spending reports. You can reclaim a significant amount of time by creating self-service dashboards that give leaders access to the financial data they need. When department heads can pull their own budget-versus-actual reports, they gain a deeper sense of ownership over their numbers. This transparency empowers them to make better decisions and turns them into proactive partners in the financial process. With the right data integrations, these reports can be updated in near real-time, ensuring everyone is working from the most current information.
While a checklist brings much-needed order to the financial close, it still relies on manual effort. The next step is to let technology handle the repetitive tasks for you. Automation doesn't just make your close process faster; it fundamentally changes how your finance team operates, shifting their focus from tedious data entry to strategic analysis. By implementing automated solutions, you can turn your financial close from a stressful monthly scramble into a smooth, predictable, and even insightful process.
Automating key parts of your close process reduces the risk of human error, provides a clearer picture of your company's financial health at any given moment, and ensures your data is consistent across all your systems. It’s about creating a reliable financial engine that supports your business as it grows. Instead of just closing the books, you’re building a foundation for smarter, data-driven decisions. Let’s look at a few specific ways automation can make a difference.
Reconciling accounts is one of the most time-consuming parts of the month-end close. It involves manually matching thousands of transactions, and it’s incredibly easy for small mistakes to slip through, leading to hours of frustrating detective work. Automation takes this burden off your team’s shoulders. An automated system can instantly compare transactions from different sources—like your bank statements and general ledger—and flag discrepancies in real time. This means you can find and fix errors as they happen instead of waiting until the end of the month. This not only speeds up the close but also dramatically improves the accuracy of your financial statements.
Traditionally, financial reporting is a look back at what happened last month. By the time you get the reports, the information is already dated. Automation changes this by providing real-time visibility into your financial data. When your systems are connected and data flows automatically, you can pull up-to-the-minute reports whenever you need them. This empowers your team to move from a reactive role to a proactive one. Instead of just reporting on past performance, they can offer timely insights that guide strategic decisions, helping you respond to market changes or internal challenges much more quickly.
Most businesses use a variety of tools to manage their operations, from CRMs and billing platforms to ERPs and accounting software. Without automation, your team has to manually pull data from each system and consolidate it, which is both inefficient and risky. Modern automation solutions are built to connect these disparate systems. Through seamless integrations, data is automatically synced, creating a single source of truth for your financial information. This eliminates manual data entry, ensures consistency across platforms, and gives you a complete, unified view of your business finances without the manual legwork.
Once you’ve decided to bring in a tool to help, the next step is figuring out which one is right for you. The market is full of financial close solutions, but they aren’t all built the same. The best software does more than just digitize your checklist; it actively streamlines your entire workflow, reduces manual work, and gives you a clearer picture of your company’s financial health.
Your goal is to find a solution that not only solves your current challenges but can also scale with you as your business grows. For high-volume businesses, this is especially important, as manual processes can quickly become overwhelmed by transaction complexity. A powerful solution should offer robust integrations with your existing systems, like your ERP and accounting software, to create a single source of truth for your financial data. Instead of just managing tasks, the right tool transforms your close from a stressful monthly fire drill into a smooth, predictable process. Let’s look at the non-negotiable features you should be looking for.
A great financial close solution acts as the central command center for your entire team. Look for a platform with a clear, intuitive dashboard where you can assign tasks, set deadlines, and track progress in real time. This eliminates the need for endless email chains and status update meetings. Automating the month-end close process can free up your team’s time, allowing them to focus on more strategic initiatives instead of just chasing down updates. Automated reminders are another key feature, as they gently nudge team members when deadlines are approaching, preventing bottlenecks before they happen and keeping the entire process on schedule.
When audit season rolls around, the last thing you want is to be digging through spreadsheets and email threads to justify a number. A solid financial close solution should provide a detailed, unchangeable audit trail for every single entry and reconciliation. This means you can see who did what, when they did it, and any approvals involved. Good automation software actually improves process tracking efficiency by eliminating manual tasks and reducing errors. This built-in accountability not only makes audits smoother but also strengthens your internal controls and ensures you’re always compliant with standards like ASC 606.
Consistency is the secret to an efficient and accurate close. Your chosen solution should allow you to create and save standardized templates and workflows for all your recurring closing activities, from balance sheet reconciliations to journal entry approvals. Standardizing your financial close processes ensures that tasks are performed the same way every single month, no matter who is responsible for them. This drastically reduces the risk of errors and makes it much easier to train new team members. It also makes the entire process more predictable, helping you close the books faster and with greater confidence every time.
Creating a checklist is a fantastic first step, but putting it into practice is where the real transformation happens. A checklist isn't a static document you create once and file away; it's a dynamic tool that guides your team toward a smoother, more accurate close. Implementing it effectively involves more than just handing out a to-do list. It requires clear communication, careful observation, and a commitment to making things better over time. This is the phase where you bridge the gap between theory and reality, turning a well-designed plan into a well-executed process that delivers consistent results month after month.
The goal is to embed the checklist into your team's workflow so it becomes second nature. This means getting buy-in from everyone involved and showing them how these new steps will make their jobs easier, not harder. Think of it as building new muscle memory for your finance department. Initially, it might feel different, but soon it will become the standard way of operating, leading to fewer errors and less last-minute scrambling. By focusing on training, monitoring, and continuous improvement, you can turn your checklist from a simple document into the backbone of an efficient and reliable financial close process. This approach ensures everyone is on the same page, reduces the stress of month-end, and empowers your team to work smarter, not just harder, to meet deadlines with confidence.
Your checklist is only as effective as the team using it. Before you roll it out, take the time to walk everyone through the new procedures. Explain not just what they need to do, but why each step is important for the overall accuracy and efficiency of the close. When you standardize your financial close processes, you ensure tasks are performed consistently every single time. This consistency is the foundation for a reliable close and makes it much easier to introduce automation down the line. Hold a kickoff meeting, provide clear documentation, and make sure your team knows who to ask if they have questions. A well-informed team is an empowered one.
Once your checklist is in action, the next step is to observe how it’s working. Pay attention to where the process slows down. Are certain tasks consistently taking longer than expected? Is one person or department always waiting on information from another? Identifying these bottlenecks isn't about assigning blame; it's about finding opportunities for improvement. Automated month-end close processes can help by providing real-time visibility into your financial data, making it easier to spot delays as they happen. This frees up your team from chasing down updates so they can focus on more strategic work, like analyzing the numbers instead of just gathering them.
Your business is always evolving, and your financial close checklist should, too. After each close cycle, hold a brief review meeting with your team. Discuss what went smoothly and what challenges came up. Tracking how long tasks take and where errors occur can give you valuable data to refine your process. This is also the perfect time to explore how technology can help. Using automation can significantly improve accuracy, increase efficiency, and provide real-time financial insights that support better decision-making. Treat your checklist as a living document, and you’ll ensure your close process gets stronger and more streamlined over time.
My team is really small. Do we still need a formal checklist? Absolutely. A checklist isn't about adding bureaucracy; it's about creating a reliable and repeatable process. For a small team, or even a team of one, it ensures consistency and prevents critical steps from being forgotten during busy periods. Think of it as a professional habit that builds a strong foundation, making it much easier to scale your operations and train new people as your business grows.
How do I get other departments to submit their information on time? This is a common challenge, and it usually comes down to communication. Often, other teams don't see how their piece of the puzzle affects the entire financial picture. Try holding a brief kickoff meeting before the close to explain the timeline and why their timely input is critical for accurate reporting. When people understand the impact of their deadlines, they are much more likely to prioritize them.
Our checklist is in place, but the close is still slow. What's the next step? If your process is standardized but still slow, the bottleneck is likely the manual work itself. A checklist is fantastic for organizing tasks, but it doesn't reduce the time it takes to manually reconcile accounts or enter data. The next logical step is to identify the most time-consuming, repetitive tasks on your list and explore how automation can handle them for you, freeing your team to focus on analysis instead of administration.
How often should we update our financial close checklist? You should treat your checklist as a living document, not something you create once and forget. A great practice is to hold a brief review with your team after every close to discuss what worked and what didn't. While you might only make significant changes quarterly or when you adopt a new system, this regular check-in ensures the process is always being refined and never becomes outdated.
What's the difference between a checklist and financial close software? A checklist tells you what needs to get done, while financial close software helps you do it more efficiently. Think of the checklist as your recipe and the software as a state-of-the-art kitchen. The software can automate the steps in your recipe, like reconciliations and reporting, while also providing real-time visibility, sending deadline reminders, and creating a clear audit trail for every task.
Former Root, EVP of Finance/Data at multiple FinTech startups
Jason Kyle Berwanger: An accomplished two-time entrepreneur, polyglot in finance, data & tech with 15 years of expertise. Builder, practitioner, leader—pioneering multiple ERP implementations and data solutions. Catalyst behind a 6% gross margin improvement with a sub-90-day IPO at Root insurance, powered by his vision & platform. Having held virtually every role from accountant to finance systems to finance exec, he brings a rare and noteworthy perspective in rethinking the finance tooling landscape.
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