> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pluvel.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Month-End Close

> Complete the monthly close process for your clients.

Month-end close is the finish line. All the transactions are categorized. Banks are reconciled. Adjustments are posted. Reports reflect reality.

Then you lock the period so nobody can accidentally (or intentionally) mess with the numbers.

## The close checklist

Pluvel generates a checklist for each client. Don't close until everything is checked off.

### Before you start

* [ ] **All bank accounts reconciled** — No exceptions. If it's not reconciled, the numbers can't be trusted.
* [ ] **All transactions categorized** — Zero uncategorized items. Anything in "Needs Review" gets resolved now.
* [ ] **Outstanding questions answered** — Any "Ask Client" items need responses before close.
* [ ] **Credit cards reconciled** — Same as bank accounts.
* [ ] **Petty cash balanced** — If they have a cash drawer, it better match.

### Adjustments to consider

* [ ] **Prepaid expenses allocated** — That $12,000 annual insurance payment? $1,000 should expense this month.
* [ ] **Depreciation recorded** — Monthly depreciation on fixed assets.
* [ ] **Accrued expenses** — Did they incur costs this month that they haven't been billed for yet?
* [ ] **Revenue recognition** — Any revenue that needs to be recognized or deferred?
* [ ] **Payroll accruals** — If pay period spans month-end, accrue wages earned but not yet paid.

### Review the numbers

* [ ] **Trial balance balances** — Debits equal credits. If not, stop.
* [ ] **P\&L makes sense** — Revenue reasonable? Expenses in line with history? No weird spikes?
* [ ] **Balance sheet reviewed** — Assets, liabilities, equity all looking right?
* [ ] **Compare to prior period** — Anything dramatically different needs explanation.

### Lock it down

* [ ] **All adjusting entries posted**
* [ ] **Period locked**
* [ ] **Final reports generated**

## The close workflow

<Steps>
  <Step title="Start the close">
    Go to **Accounting → Close Period**. Select the month you're closing.

    Pluvel shows you the checklist with your current progress. Items that are already complete show green checkmarks.
  </Step>

  <Step title="Work through what's left">
    Incomplete items show what's needed. Click any item to jump directly to that area.

    * "5 uncategorized transactions" → Click to go categorize them
    * "Operating checking not reconciled" → Click to start reconciliation
  </Step>

  <Step title="Post adjusting entries">
    Create any month-end adjustments. Date them the last day of the month you're closing.

    Mark entries as "Adjusting Entry" so they're easy to find later.
  </Step>

  <Step title="Review the reports">
    Generate preliminary P\&L and balance sheet. Look for:

    * Revenue that seems too high or low
    * Expense spikes that need explanation
    * Balance sheet accounts that look off

    Fix anything that doesn't look right before you lock.
  </Step>

  <Step title="Close the period">
    When everything is complete, click **Close Period**.

    You can choose soft close (preliminary, can still edit) or hard close (final, period locked).
  </Step>
</Steps>

## Adjusting journal entries

Month-end usually requires some adjustments. Common ones:

| Adjustment               | Example                                           |
| ------------------------ | ------------------------------------------------- |
| **Prepaid amortization** | $12,000 annual insurance → $1,000/month expense   |
| **Depreciation**         | \$500/month on fixed assets                       |
| **Accrued expenses**     | \$3,000 in legal fees incurred but not billed yet |
| **Accrued revenue**      | Work completed but not yet invoiced               |
| **Deferred revenue**     | Prepayment received, service not yet delivered    |

### Creating an adjusting entry

1. Go to **Accounting → Journal Entries**
2. Click **New Entry**
3. Date it the last day of the closing month
4. Add your debit and credit lines
5. Check "Adjusting Entry"
6. Save and post

### Make recurring adjustments recurring

Depreciation is the same every month. Prepaid amortization is the same every month. Don't re-create these entries 12 times:

1. Create the entry once
2. Click **Make Recurring**
3. Set it to post monthly on the last day
4. Forget about it

Pluvel posts it automatically. One less thing on your checklist.

## Reviewing before close

### Trial balance

The basics:

* Total debits = Total credits (if not, something's broken)
* Cash matches reconciled bank balance
* AR matches your invoice aging
* AP matches your bill aging

### P\&L review

Questions to ask:

* Is revenue close to last month? If not, why?
* Any expense accounts way higher than normal?
* COGS ratio consistent with history?
* Any unallocated amounts in suspense accounts?

### Balance sheet review

Check that:

* Assets make sense (no negative cash, reasonable AR/AP)
* Liabilities are complete (nothing missing?)
* Equity rolls forward correctly from last month
* If multi-entity, intercompany balances net to zero

## Soft close vs. hard close

| Type           | What it means                                           | When to use                               |
| -------------- | ------------------------------------------------------- | ----------------------------------------- |
| **Soft close** | Preliminary. Reports generated, but you can still edit. | When client needs to review before final. |
| **Hard close** | Final. Period locked, no changes allowed.               | When you're done done.                    |

Most workflows: soft close first for client review, then hard close after approval.

## Period locking

When you hard close:

* No new transactions can post to that period
* Existing transactions can't be edited
* Reports are frozen
* Audit trail is complete

This is the point. You want closed periods to stay closed.

### If you need to reopen

It happens. You closed January, then found an error.

1. Go to **Accounting → Periods**
2. Click **Reopen** on the closed period
3. Make your fix
4. Close again

<Warning>
  Reopening requires admin permission. Every change is logged. Don't make a habit of this — it defeats the purpose of closing.
</Warning>

## Tracking close status across clients

The firm dashboard shows close status for everyone:

| Client    | Period  | Status                       |
| --------- | ------- | ---------------------------- |
| Acme Corp | January | ✓ Closed                     |
| Beta LLC  | January | ⏳ In progress (3 items left) |
| Gamma Inc | January | ○ Not started                |

Sort by status to see who's behind. Work through them systematically.

## Close timeline

A reasonable schedule for a standard client:

| Day of month | Activity                                  |
| ------------ | ----------------------------------------- |
| 1-3          | Bank feeds download, start reconciliation |
| 4-5          | Finish reconciliation, transaction review |
| 6-7          | Post adjustments, preliminary review      |
| 8-10         | Final review, close period                |

Adjust based on client complexity. Simple clients close in 2 days. Complex ones take longer.

The goal: close the prior month within 10 business days. Don't let it drag into week three.

<Card title="Document requests" icon="file-circle-question" href="/accountants/workflows/document-requests">
  Need documents from clients to finish the close? Send a request.
</Card>