Why do you need a closing checklist?
Without a list, closing depends on memory. Steps get skipped, and reports to donors rest on figures that were never checked. A checklist makes closing predictable and lets a new team member do the work.
It also helps donors’ reporting. When every month is closed and locked, your quarterly figures are the sum of months you already trust.
What belongs on the checklist?
Group the steps by purpose. Adjust the order to fit your own process.
1. Cut off
- Announce the cut-off date for field submissions.
- Collect and post all invoices, claims, advances and vouchers for the month.
2. Complete the records
- Post recurring entries, such as rent and depreciation.
- Accrue costs for goods and services received but not yet invoiced.
- Record deferred income where donor money relates to a later period.
3. Reconcile
- Reconcile every bank account. See our guide to monthly bank reconciliation.
- Count and reconcile petty cash.
- List open staff advances and check settlement dates.
- Check that unallocated or suspense items are cleared.
4. Allocate
- Run shared-cost allocations to grants.
- Check that every entry has a project, grant and fund where required.
5. Review
- Compare actuals with budget by grant and line.
- Explain big movements.
- Check foreign currency balances and revalue where your policy requires it.
6. Sign off and lock
- The head of finance reviews and signs.
- Lock the period.
- Archive the working papers.
How do you set due days?
Make a simple calendar with a day number for each step. For example:
| Working day | Step | Owner |
|---|---|---|
| 1 | Cut-off; collect field submissions | Finance officers |
| 2 to 3 | Post all entries and accruals | Finance officers |
| 4 | Reconciliations | Accountant |
| 5 | Allocations and review | Accountant |
| 6 | Sign-off and lock | Head of finance |
Adapt the days to your size. Print the calendar and track it.
How do you handle errors found after the lock?
Never edit a locked month silently. Post a correction in the current open period, with a note that points back to the original entry. If the error is large, the head of finance decides whether to reopen the month. Record who approved the reopening and why.
What mistakes should you avoid?
- Closing before reconciliations are finished.
- Letting the cut-off drift every month.
- Skipping accruals because “the invoice has not come yet”.
- Locking nothing, so old months keep changing.
A worked example
A country office with two field sites sets a close of six working days. At the start of the close, the finance lead sends a reminder to the field sites and sets the cut-off for 5 pm on day two. The next day, one site sends its papers late. Finance posts what it has and accrues an estimate for the missing costs, with a note.
On day four, the accountant reconciles the main bank account and the field cash. The bank reconciliation shows a donor credit that was not yet recorded, so she posts it. On day five, she runs the shared-cost allocation, compares actuals with budget, and notes two lines far from plan. On day six, the head of finance reads the pack, asks one question, and approves. The period is then locked.
Two weeks later, the late papers arrive and show that the accrual was 300 too high. The team posts a small correction in the open month, with a note that points to the original entry. The locked month stays untouched.
Tips for a faster close
- Fix the biggest delays first. For most teams, that is late field papers.
- Train field staff on cut-off dates and on what a complete pack looks like.
- Post entries through the month, not in one batch at the end.
- Use a short template for every working paper.
- After each close, hold a ten-minute review: what went late and why?
What to keep in the close file
Keep the checklist with initials and dates, the reconciliations, the allocation calculation, the budget comparison and the sign-off. Store one file per month. When an auditor asks how you know a month was complete, you point to the file. Donor rules on records and retention differ, so check your agreements.
Who should sign off
The preparer of the entries should not be the only reviewer. Ask the head of finance, or a senior colleague outside the daily posting, to read the pack and sign. A second pair of eyes catches the errors that the preparer no longer sees. Record the name and date of the sign-off in the close file, so the lock has a clear owner.
Where EMPOBase fits
EMPOBase has Period Closing in the Finance module. Posting in a closed period is blocked, and the lock is enforced on the server. Corrections use reversal entries, so there are no silent edits to posted figures. Recurring rules prepare draft journals for review. Cost Allocation and Bank Reconciliation also sit in Finance. Your team still owns the checklist and the sign-off. See the platform overview.