Month-end close process flowchart

Month-end close process flowchart

A worked example to adapt. Rename steps, add branches and owners to match how your team actually works.

flowchart TD
  s(["Period end"])
  cut["Set transaction cutoff date"]
  sub["Close AP, AR and payroll sub-ledgers"]
  acc["Post accruals and prepaids"]
  rec["Reconcile bank and balance sheet accounts"]
  var["Review variances against budget"]
  d1{"Variances explained?"}
  adj["Investigate and post adjustments"]
  sign["Controller review and sign-off"]
  lock["Lock the period"]
  e(["Issue financial statements"])
  s --> cut
  cut --> sub
  sub --> acc
  acc --> rec
  rec --> var
  var --> d1
  d1 -->|Yes| sign
  d1 -->|No| adj
  adj --> rec
  sign --> lock
  lock --> e

About this month-end close process flowchart

The month-end close is a checklist with a strict order: sub-ledgers close before the general ledger is reconciled, and accruals are posted before accounts are reconciled and variances reviewed. A flowchart makes the order and the review loop visible to everyone on the finance team.

This example fits a small or mid-sized finance team. Add consolidation and intercompany steps for multiple entities.

Step by step

1. Cutoff. New transactions after the cutoff go to the next month; the period stays open for closing entries.
2. Sub-ledgers. Close payables, receivables and payroll.
3. Accrue. Post accruals and prepaid adjustments.
4. Reconcile and review. Match bank and balance sheet accounts to supporting detail, then compare results to budget and prior months.
5. Adjust, sign off and lock. Unexplained variances are investigated and adjusted, and affected accounts are reconciled again; after the controller signs off, the period is locked.

How to make it in flow-chart.io

1. Start from the example. Edit the text in the generator box above so it names your own close checklist and ledgers, then press Generate. The free preview needs no sign-up.
2. Add the branches. Add the decision points that matter for you, for example multiple entities? or materiality threshold exceeded?. Each decision becomes a diamond with labeled outcomes.
3. Assign owners. Save the diagram to the editor (free account) and rename steps to show who does what: staff accountant, AP, payroll and controller.
4. Share or export. Share a read-only view link: people with the link can view the diagram but not edit it. Downloads as PNG, SVG or PDF are part of Flow Pro (see pricing).

Tips

• Set a target close day and track it each month.
• Keep reconciliations with the supporting documents attached.
• Define a materiality threshold for variance investigation.

Frequently asked questions

What is the month-end close?

The process of recording, reconciling and reviewing a month's transactions so financial statements can be issued.

Why do reconciliations come before variance review?

Reviewing variances on unreconciled accounts can mean explaining errors rather than real results.

Can I make a swimlane version?

Yes. Ask the generator for a swimlane diagram with lanes for each role.

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