NOTES:

EBITDA is Earnings Before Interest Taxes Depreciation and Amortization. While a non-GAAP
measure, it is widely used as a measure of performance.

How to use the Month-End Close Checklist

General The template comes with two tabs. The first tab Checklist is a clean version
of the checklist that doesnt have owner, progress, date complete, or comments. The
first thing you will want to do is to go over the individual Sections and Activities to
ensure these are the right ones for your month-end close. The activities included in this
listing are not all-inclusive, and they have not been designed to meet your specific
needs, goals, fact pattern, etc. So tailor them. The same holds true for timing. When
tasks are performed depends in large part on staffing, goals, and technology. The
overall timing as well as when specific activities are going to be performed needs to be
tailored.
The second tab is an Example of an in-process month-end close checklist. This is only
here to provide a visual of what it might look like during a close.
Top Section The top portion of this template includes a location for the:
Company Name
Checklist Title Default is Month End Close Checklist
Current Date when the checklist was last updated
Highlight Option select Yes or No to highlight items that have been flagged with an
issue
Close Period the period being closed

This section will print at the top of each page automatically. In the header weve
included a date field, so the date the checklist is printed will be reflected automatically.
The Checklist The month-end close checklist is an excel table, giving you all of the
benefits of a table with no macros. It will automatically expand to include a new record.
Formatting is automatically applied to new information. The headers are always visible.
Plus, its quick and easy to change the look and feel of the table; simply click anywhere
on the table and go to DESIGN under TABLE TOOLS, then just select the color scheme
of your preference.
Tool tips have been placed on each column heading to act as reminders for the
contents of each column. To change these, or delete them, select the cell with the tip
you want to modify. Then go to DATA > DATA VALIDATION > INPUT MESSAGE.
Section Categorize the tasks/activities into Sections. Tip, make the Sections conform
to the financial statement lines for your business. Sections can also include reporting
tasks and other project management objectives relevant to the month-end close.
Day Enter the number of days before (as negative numbers) or after (as positive
numbers) the end of the month. For example, if a task is supposed to occur 2 days
before month-end you would enter -2.
 Issue Select from the dropdown box if this activity has an Issue. If no issue, select
none. Note, when an activity has been labeled as an Issue here and the Highlight
Items With Issues is Yes the entire row will automatically be highlighted yellow. Use
this to quickly pinpoint areas that need additional attention.
Activity Description Brief description of activity to be performed. While it should be
brief, you want enough information to be clear. Tip, use specific report names or file
locations as a memory jogger in the description.
Owner Individual that owns this activity. In this case the owner is the person who is
going to accomplish the activity.
Progress Keep track of progress by selecting the status of the activity. Select either
Not Started, In Process, or Complete. Based on your selection, this cell will
automatically change colors, except for Not Started which stays white. In Process =
Orange. Complete = Green. This color coding makes it quick and easy to look over the
month-end close checklist and gauge progress.
Due Date Date the Activity is due. This is a formula based on the Day column and
Month-End date.
Date Complete Actual date activity is completed. Leave this cell blank until the
activity has been marked complete.
Comments Enter comments relevant to activity. Tip, keep track of issues or ideas for
improvement within the comments section.

The Footer Weve included a footer in this document. Both the file location and the
page numbers are included in the footer. This is helpful so that when the month-end
close checklist is printed its original location is identified making it easy to find again
electronically. The page number is in the X of Y format, so if you have 2 pages of the
close checklist and there actually 3 you can quickly tell. It will say page 2 of 3, so youll
know youre missing key information.

Month-End Close Best Practices

Processes Implement well-defined processes. The processes should be understood
by all team members and include contingency plans. What happens when something
goes wrong or when someone isnt there? Part of the process should be a month-end
close checklist similar to the free one you found here.
Communication this would include both accounting and non-accounting personnel.
Ensure that all owners have an understanding of their role and expectations. The
month-end close checklist includes a meeting activity (G-2) to go over key information.
Be vocal about the process, distribute a closing calendar and keep lines of
communication open. However, dont wait for month-end to communicate. Keep the
process open and active during the month. Distribute a contact list with names, titles,
and contact information and encourage people to use this list proactively.
Templates The use of templates standardizes processes and procedures. It makes
them easier to complete, review and transition between team members. Implement
templates in the journal entry process, the reconciliation process, the financial reporting
process, the control narrative process, reminder emails (i.e., when emailing personnel
regarding the due date for expense reports use a template), etc.
 Simplify Try to keep things simple and straight-forward. Evaluate the activities being
performed and the time it takes to perform those activities to ensure the appropriate
value is being realized. Activities consuming a large amount of resource time may be an
indicator of inefficiency or complexity that needs to be addressed. Keep track of errors
and evaluate the root cause. Automate where possible. This will not only simplify the
level of effort necessary but will also improve the accuracy of the related financial
information. Lastly, combine activities where it makes sense. This will help reduce the
amount of time being spent redundantly.
Planning Identify tasks and activities that can be done before the end of the month.
Certain tasks, such as the payroll accrual dont need to be performed after the end of
the month. Such calculations can be easily and accurately estimated prior to the end of
the month. When reviewing tasks for simplification, be on the lookout for tasks that can
be done in pieces. For example, if your company frequently disposes of and/or acquires
fixed assets, establish weekly procedures to track and account for this activity. Another
example is cash. Maybe this is a time-consuming process and should be done weekly
so that only the last week of the month needs to be reconciled, and all other issues
have previously been resolved. A weekly cash reconciliation process helps with the
month-end close time, improves cash controls, and can be a part of a cash
management strategy.
Post-mortem Just as critical as the planning phase, is a post-mortem. How did the
close go? What can be improved? What needs to change? Weve included a post-
mortem step (G-7) in our checklist so it becomes part of the process. Use the post-
mortem to make changes to the checklist while the information is fresh on your mind.
This evaluation should take place right after the financial package is published and
distributed. Tip use the checklist to identify metrics that can be measured against
progress. For example, you can track:
Number of issues encountered during the month
Number of days from month-end to distribution of the financial package
Tasks completed on time (Date Complete vs. Due Date)