Month-End Close Checklist

Run the unposted-entries report from the GL system (Sage Intacct, NetSuite, QuickBooks Enterprise — whichever the firm uses). Recurring entries, accruals, and reversing entries from prior period are the common gotchas; verify they posted to the correct period before cutoff.

Pull bank statements for every operating, payroll, and (if applicable) IOLTA/trust account. Match every clearing item; investigate stale outstanding checks over 90 days. The trust account reconciliation must tie to the penny — a $0.42 variance is still a variance.

Compare AR, AP, fixed asset, and prepaid sub-ledger totals to their GL control accounts. Sub-ledger drift is almost always a posting error in the prior period — track down the entry and book the correcting JE before drafting statements.

For multi-entity firms (advisory + insurance agency, holding company structures, separate broker-dealer) confirm intercompany due-to/due-from accounts net to zero at consolidation. Timing differences from cross-entity expense allocations are the usual culprit.

Document the side of the imbalance, the entity pair, and the suspected cause. Common drivers: an expense allocation booked on one side but not the other, or a cash sweep that crossed month-end. Resolve before trial balance prep.

Pull the AR aging from the billing system and tie the total to the AR control account in the GL. Anything in 60+ or 90+ buckets needs an explanation in the close file — these become the basis for the doubtful-accounts review later this week.

For quarterly fee periods, three-way reconcile: Orion/Black Diamond/Tamarac fee invoice → custodian fee debit (Schwab, Fidelity, Pershing, Altruist) → GL revenue posting. Differences usually come from a household added mid-period, a fee waiver not flagged in the billing system, or an account that got billed on the wrong basis (avg daily vs. period-end).

Walk the 90+ aging with the principal advisor for each delinquent household. Adjust the reserve based on collectability; recommend write-offs for accounts the advisor has confirmed are uncollectable. Document the rationale — auditors will ask.

Spot-check direct-pay clients (those not on custodian fee debit). Misapplied payments — credit posted to the wrong household — surface as both an over-aged item and a credit balance, so search both ends of the aging.

For variances over $500, loop in the operations lead and the responsible advisor. Document root cause (billing setup error, fee schedule change, custodian debit timing) and corrective action. Material variances may require a refund to the client and a corresponding GL correction.

Sweep Bill.com, Ramp, or the AP inbox for invoices dated in the close period. Common late-arrivers: technology subscription renewals (Salesforce, eMoney, Riskalyze), legal invoices, and the custodian's quarterly platform fee. Anything received but not yet invoiced needs an accrual in the next step.

Book accruals for services delivered in-period but not yet invoiced. The recurring suspects: outsourced compliance (ACA, RIA in a Box), 1099 contractors, marketing agency retainers, and quarterly platform fees that bill in arrears.

Reconcile Bill.com / Ramp payment runs to bank clearings. Watch for ACH returns and stop-payments — these are typically the source of the AP-to-cash timing differences that show up at month-end.

Run the duplicate-invoice report by vendor + amount + date window. Aged-over-60 items either need to be paid this cycle or have a documented dispute. Unexplained aging is a bad look at the year-end audit.

Add in-period acquisitions (laptops issued to new advisors, office buildout costs, server hardware) and remove disposals. Confirm the in-service date — it drives when depreciation begins.

Run depreciation in the FA module (Sage FAS, NetSuite FAM, or the spreadsheet schedule). Verify the JE total ties to the schedule before posting; a wrong useful-life on one asset can propagate for years if it isn't caught.

Walk the prepaid schedule and book the period's amortization. Largest line items at advisory firms are typically annual E&O / cyber / fidelity bond premiums, prepaid software (Salesforce, Black Diamond, Riskalyze annual contracts), and prepaid rent.

For acquired books of business carried as intangibles, review for impairment indicators per ASC 350 — significant client attrition, advisor departure with non-compete, or AUM decline tied to the acquired book. Flag for Step 306 if indicators are present.

Document the impairment test (carrying value vs. recoverable amount), the adjustment booked, and the CFO's review of the methodology. This memo will be requested by the auditor in detail at year-end — write it once, write it well.

Run the post-close trial balance and review against prior month and budget. Investigate any account with greater-than-10% movement that doesn't have a known driver. Sign the trial balance review checklist before drafting statements.

Build the comparative P&L (current month, YTD, prior year, budget) and balance sheet from the locked trial balance. The flux analysis attached to each statement is what management actually reads — call out the why for every meaningful variance.

Indirect method, tied to the change in cash on the balance sheet. Common reconciling items at advisory firms: deferred revenue movement on prepaid retainers, accrued advisor compensation, and changes in due-to/due-from related entities.

Walk the disclosure checklist — ASC 606 revenue recognition for performance fees, ASC 842 lease disclosures, related-party disclosures for owner compensation. For RIAs subject to net capital requirements, confirm the calculation is current.

Walk the CFO through the close package: trial balance, financials, flux memo, and any unusual items captured during reconciliation. Once approved, lock the period in the GL so post-close entries route through a separate review queue.