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Month-End Close

Run pre-close checks, adjust entries, and lock the period

Month-End Close

Reading time: 10 minutes

Walk through the complete month-end close process in Atlas — from pre-close checks through adjusting entries to locking the period. By the end you will have a clean, locked period with a balanced trial balance.

Prerequisites

  • An Atlas account with Accountant role or above
  • All bank accounts reconciled for the period
  • All invoices and bills for the period entered

Step 1: Pre-Close Checklist

Before closing, verify these items are complete:

CheckWhere to Verify
Bank accounts reconciledBanking > Bank Accounts — look for Reconciled badge
All invoices enteredInvoicing > Invoices — filter by period
All bills enteredBills > All Bills — filter by period
Payroll processed (if applicable)Payroll > Pay Runs
Depreciation run (if applicable)Assets > Run Depreciation
Intercompany transactions balancedJournal Entries — filter by intercompany

Atlas provides an automated checklist at Accounting > Period Close that tracks these items for you.

Step 2: Review Unreconciled Items

  1. Navigate to Reports > Trial Balance

  2. Set the period end date to the last day of the month

  3. Look for unusual balances:

    • Negative cash balances (possible missing transfers)
    • AR or AP balances that do not match your aging reports
    • Suspense account balances that need reclassification

  4. Run the General Ledger report for any account that looks unexpected

  5. Resolve discrepancies before proceeding

Step 3: Post Adjusting Entries

Common month-end adjustments:

Accrued Expenses

For expenses incurred but not yet billed:

  1. Go to Accounting > Journal Entries
  2. Click New Journal Entry
  3. Enter:
    • Debit: Expense account (e.g., "Utilities Expense")
    • Credit: Accrued Liabilities
  4. Add a memo: "Accrue December utilities"
  5. Mark as Adjusting Entry
  6. Click Save

Prepaid Expenses

To recognize a portion of prepaid expenses:

  1. Create a journal entry
  2. Debit: Expense account
  3. Credit: Prepaid Expenses
  4. Memo: "Amortize insurance — December"

Deferred Revenue

To recognize revenue that was collected in advance:

  1. Create a journal entry
  2. Debit: Deferred Revenue (liability)
  3. Credit: Revenue account
  4. Memo: "Recognize December consulting revenue"

Tip: Atlas supports deferred revenue and expense schedules that automate these entries. See the Journal Entries guide for details.

Step 4: Run the Trial Balance

  1. Navigate to Reports > Trial Balance
  2. Set the date range to the full month
  3. Verify:
    • Total debits = Total credits (must balance exactly)
    • Revenue and expense accounts show expected balances
    • Balance sheet accounts are reasonable
  4. Export or save the trial balance for your records

If debits do not equal credits, there is a data entry error. Use the General Ledger report to trace the discrepancy.

Step 5: Close the Period

  1. Go to Accounting > Period Close
  2. Select the period year and month
  3. Atlas performs final validation:
    • Trial balance is balanced
    • All required checklist items are complete
    • No unposted draft journal entries in the period
  4. Click Close Period

What Happens When You Close

  • The period is locked — no new transactions can be posted to dates within this period
  • A snapshot of the trial balance is saved
  • The closing is recorded in the audit trail
  • Only users with Accountant role or above can reopen a closed period

Important: If you need to make corrections after closing, you must either reopen the period (requires Accountant+ role) or post a correcting entry in the next open period.

Step 6: Generate Reports

With the period closed, generate your standard reporting package:

  1. Profit & Loss — revenue and expenses for the month
  2. Balance Sheet — financial position as of month end
  3. Cash Flow Statement — cash movements during the month
  4. Trial Balance — final, locked balances

Navigate to Reports and select each report with the closed period dates.

Troubleshooting

IssueSolution
Cannot close periodCheck that the trial balance is balanced
Trial balance does not balanceRun General Ledger to find the discrepancy
Missing transactionsCheck draft invoices/bills that were not posted
Need to edit a closed periodReopen from Accounting > Period Close (Accountant+ only)

What's Next

After closing the month:

  • Review budget vs. actual for variance analysis
  • Set up email digests for automated monthly report delivery
  • Plan next month's close by keeping the checklist up to date throughout the period