Term
What is month-end close? Meaning and explanation
The month-end close (maandafsluiting) is the fixed process that makes an administration complete and correct at the end of a month, so the figures for that period are reliable for reporting, VAT and advice.
Definition
The month-end close (maandafsluiting) is the fixed process that makes an administration complete and correct at the end of a month, so the figures for that period are reliable for reporting, VAT and advice.
Also known as: Maandafsluiting, Periodeafsluiting, Month-end close, Maandafsluiten
In a month-end close, all documents for the period are processed, bank transactions are matched and reconciled, suspense accounts are cleared and accruals and deferrals are booked, such as prepaid expenses or invoices still to be received. Checks follow: do bank and cash balances agree, are open items in receivables and payables correct, and are there no unexplained differences. Finally, the period is often locked so that nothing more is posted to it.
For a firm, the month-end close determines how current its advice to clients can be. Closing monthly surfaces problems earlier and means less work around the VAT deadline and the year-end close. The biggest delay is usually not the booking, but missing documents and client questions left unanswered. A fixed checklist per administration makes the process predictable and transferable.
In Autoboeker, unmatched bank transactions are visible per administration and are queried before you close (bank matching is available for Exact Online, Twinfield and SnelStart). Outstanding client actions are in one overview, and the client delivers missing documents through the portal or the app. Accruals and deferrals are part of processing for all four packages.
Example
On the third working day of the month, the firm sees per client which bank transactions are still unmatched and which client questions are open. After the last answers come in, the suspense account is cleared and the figures are shared with the client.
FAQ
Questions about month-end close.
Process all documents, match and reconcile the bank, clear suspense accounts, book accruals and deferrals, check balances and open items, and lock the period.
Usually because of missing documents and unanswered client questions, not the booking itself. Requesting them early in the month shortens the turnaround time.
Further reading
Related in the knowledge base.
Guides
Month-end close checklist for bookkeeping firms
Checklist for month-end and quarter-end close: all documents in, bank reconciled, suspense accounts cleared, accruals booked and VAT checked before filing.
10 min readRead the guideWorkflowsBank matching and reconciliation: how to automate it
What bank matching and reconciliation are, how to link transactions to invoices and how AI matches on amount, reference, IBAN, contact and date with a score.
9 min readRead the guideSee Autoboeker in your own administrations.
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