Month-End Closing Checklist for NetSuite

Closing the books each month is one of the most important financial tasks for any business. A smooth and accurate month-end close ensures financial statements are reliable, compliance requirements are met, and executives have the insights they need to make informed decisions. While NetSuite provides powerful tools to streamline the close process, finance teams still benefit from a structured checklist to ensure nothing gets overlooked.

1. Verify Transaction Entry

Before beginning the close, confirm that all necessary transactions for the month have been entered into NetSuite:

• Vendor Bills & Expenses – Ensure accounts payable items are recorded, including credit card charges and employee expenses.
• Customer Invoices & Payments – Confirm all revenue has been invoiced and payments applied.
• Journal Entries – Review manual journal entries for accuracy and approvals.

Pro Tip: Use NetSuite saved searches to identify unapproved or incomplete transactions before you proceed.

2. Reconcile Bank and Credit Card Accounts

Accurate reconciliations are the foundation of trustworthy financials:

• Match deposits, withdrawals, and fees in NetSuite with bank statements.
• Reconcile credit card transactions, ensuring expenses are coded to the correct accounts.
• Investigate discrepancies early to avoid delays later in the process.

NetSuite’s Bank Reconciliation feature can automate much of this, but manual review is still essential.

3. Review Accounts Receivable and Payable

• Accounts Receivable (AR): Generate aging reports to confirm outstanding balances. Flag past-due invoices and decide whether to adjust or escalate collection.
• Accounts Payable (AP): Check for overdue bills or vendor credits that need applying.

Keeping AR and AP clean improves working capital management and ensures your balance sheet reflects reality.

4. Accrue Revenues and Expenses

Not all revenues and expenses align perfectly with invoicing and payment dates. Month-end is the time to make adjustments:

• Post accruals for expenses incurred but not yet billed.
• Record deferred revenue recognition for contracts and subscriptions.
• Allocate prepaid expenses appropriately.

NetSuite’s revenue recognition and expense amortization modules can automate much of this work if configured correctly.

5. Reconcile Inventory

For wholesale, manufacturing, and retail businesses, inventory reconciliation is a critical step:

• Count physical inventory or review cycle counts.
• Reconcile variances between physical counts and NetSuite records.
• Review inventory valuation reports for accuracy.

This ensures cost of goods sold (COGS) and gross margin reporting are correct.

6. Review Fixed Assets and Depreciation

• Record asset purchases during the month.
• Run NetSuite’s fixed asset depreciation process.
• Reconcile depreciation expense and asset balances.

Accurate fixed asset tracking supports compliance and financial reporting.

7. Close Subsidiaries (If Applicable)

For multi-entity organizations:

• Ensure intercompany transactions are properly eliminated.
• Reconcile intercompany receivables/payables.
• Confirm consolidation rules are applied.

NetSuite’s OneWorld functionality makes subsidiary closing more efficient, but manual review is still recommended.

8. Generate and Review Financial Reports

Once reconciliations and adjustments are complete:

• Run the income statement, balance sheet, and cash flow statement.
• Compare results to budget/forecast.
• Investigate unusual variances before finalizing.

This step ensures leadership has reliable data to evaluate performance.

9. Lock the Period

When satisfied with the month’s financials:

• Use NetSuite’s Close Accounting Periods function to lock the books.
• Restrict backdated transactions to prevent accidental changes after the close.
• Document any adjusting journal entries for audit purposes.

Conclusion

A disciplined month-end closing process is essential for financial accuracy and operational insight. NetSuite provides powerful tools—like automated bank reconciliations, revenue recognition, and subsidiary management—that simplify the process, but success depends on having a clear checklist. By following these steps, finance teams can reduce errors, save time, and deliver trustworthy results every month.