What is Close Management?
Close management is the discipline of planning, coordinating, and controlling the period-end close so financial reporting is accurate, consistent, and delivered on time. It covers the timeline, task ownership, dependencies, review steps, and controls that turn daily transactions into reliable month-end or year-end results.
- Close management improves speed and confidence by structuring tasks, owners, and deadlines.
- A well-run close reduces late journals, reconciliation gaps, and reporting disputes.
- The biggest gains come from standardisation, early reconciliations, and exception management.
What close management includes
Close management typically involves:
- A close calendar with cut-off times and key milestones
- A checklist of tasks (posting, reconciliations, reviews, reporting)
- Assigned owners and approvers for each task
- Defined dependencies (e.g., payroll journals before departmental P&L review)
- Evidence standards (what documentation is required)
How a good close runs
A strong close is predictable. Teams aim to:
- Finalise source data (billing, expenses, payroll, banking feeds)
- Post recurring journals and agreed adjustments (accruals, prepayments, depreciation)
- Reconcile balance sheet accounts (bank, AR/AP, intercompany, tax, fixed assets)
- Review P&L variances and investigate exceptions
- Produce management reports and obtain sign-off
Close management is not just “more checklists”—it’s about removing friction through standard templates, clear cut-off rules, and regular in-month preparation.
Common close risks
Close delays often come from:
- Late source data or unclear cut-offs
- Unreconciled intercompany balances
- Poor master data (accounts/dimensions not used consistently)
- Too many manual journals without documentation
- Lack of ownership (everyone thinks someone else is doing it)
Best practices
- Reconcile key accounts weekly, not only at month-end
- Use standard journal templates and recurring postings
- Track exceptions centrally (unmatched balances, missing approvals)
- Keep a “close log” of issues and fixes to prevent repeat problems
What is a fast close?
A close completed quickly after period-end with strong controls and minimal rework.
How do we shorten close without lowering quality?
Move work earlier (in-month reconciliations), standardise journals, and resolve exceptions continuously.
Who should own close management?
Typically finance leadership or the controller function, with clear task ownership across the team.
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