Pre Close Last 2 3 Business Days Of The Month

---
name: close-management-pre-close-last-2-3-business-days-of-the-month
description: 'Sub-skill of close-management: Pre-Close (Last 2-3 Business Days of
  the Month) (+5).'
version: 1.0.0
category: business
type: reference
scripts_exempt: true
---

# Pre-Close (Last 2-3 Business Days of the Month) (+5)

## 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