1. Confirm that the month is complete

Before reviewing results, confirm that the underlying activity is present. Record bank, credit-card, payroll, revenue, expense, and adjusting activity through the period end. Identify information that is still missing rather than silently carrying it into the next month.

  • Post recurring and one-time activity through month-end
  • Review uncategorized and suspense transactions
  • Record payroll, benefits, fees, and other system entries
  • Document missing invoices, reports, or deposit information

2. Reconcile cash and balance-sheet accounts

Bank reconciliations are essential, but they are not the whole close. Each material balance-sheet account should tie to a statement, schedule, subsidiary record, or other support. Old or unexplained balances are often an early sign that the accounting process needs attention.

  • Reconcile every bank and credit-card account
  • Tie receivables, payables, payroll liabilities, and debt to supporting records
  • Roll forward prepaid expenses, fixed assets, and accrued items
  • Investigate old checks, deposits in transit, and unusual reconciling items

3. Review nonprofit-specific activity

The general ledger must preserve the context that management, funders, and auditors need. Review how revenue and expenses were assigned across programs, grants, restrictions, and functional categories, and confirm that releases or transfers are supported.

  • Review donor-restricted contributions and releases
  • Compare grant activity to award terms and reimbursement requests
  • Check program and functional expense classifications
  • Reconcile investment and endowment activity when applicable

4. Perform an analytical review

A technically reconciled ledger can still contain errors. Compare results with the budget, prior month, and prior year. Ask whether changes make sense operationally. Unexpected relationships, margins, or balances deserve an explanation before reports are distributed.

5. Deliver a useful reporting package

A useful package is timely, consistent, and tailored to its audience. It may include a statement of financial position, statement of activities, budget comparison, cash outlook, grant or program schedules, and a short narrative explaining meaningful changes and open decisions.

Make the checklist repeatable

Assign an owner and due date to each task, retain the supporting review, and track open items separately from completed work. The objective is not only to finish this month—it is to make next month more predictable.