Month-end 1 min read

The month-end close process, explained step by step

Name: The month-end close process, explained step by step
Uploaded: 2026-09-06T12:16:47.322696+00:00
Duration: 2 min 23 s
Description: This walkthrough covers the five-step month-end close process — cut-off, accruals and prepayments, reconciliations, review, and sign-off — showing how to standardise and repeat it every period. It is aimed at accountants and bookkeepers who want a clear, repeatable sequence that produces fully reconciled, reviewed and locked periods with management reports ready to share.

A clear, repeatable month-end close process — from cut-off to sign-off — for teams and practices working on Xero.

A 2m 23s narrated walkthrough showing the exact on-screen steps.Narrated by Lottie

This walkthrough covers the five-step month-end close process — cut-off, accruals and prepayments, reconciliations, review, and sign-off — showing how to standardise and repeat it every period. It is aimed at accountants and bookkeepers who want a clear, repeatable sequence that produces fully reconciled, reviewed and locked periods with management reports ready to share.

A good month-end close is repeatable, reviewable and fast. Here's a step‑by‑step process you can standardise.

1. Cut-off

Make sure all invoices, bills and bank transactions for the period are in and dated correctly.

2. Accruals and prepayments

Post accruals for costs incurred but not billed, and release prepayments for the month. Depreciation and deferred income schedules run here too.

3. Reconciliations

Reconcile bank, control accounts and every schedule (accruals, prepayments, deferred income, fixed assets) back to the ledger. Investigate variances.

4. Review

A second pair of eyes checks the journals, variances and unusual movements — ideally with plain‑English explanations attached.

5. Sign-off and report

Lock the period, record who signed it off, and produce the management reports.

Make it repeatable

WorkWithLottie automates steps 2 and 3, flags variances and missing accruals, and gives a practice-wide view of every client's close status — so the whole process is faster and controlled.

Frequently asked questions

How long should a month-end close take?

It varies, but well-run teams close within a few working days. Automating recurring journals and reconciliations is the biggest lever for speeding it up.

What is a month-end close checklist?

A repeatable list of the tasks needed to close a period — cut-off, accruals and prepayments, reconciliations, review and sign-off — so nothing is missed.