Month-End Close Checklist — Trackline Partners

Month-End Close Checklist
for PE-Backed Companies

Use this checklist to assess how clean and accurate your portfolio company's monthly close process really is — and where the gaps might be costing you.

🔒 Free Resource
Why this matters: Most PE-backed companies at the lower middle market level are closing their books late, mismanaging accruals, and producing financials that don't accurately reflect business performance. This checklist helps you identify exactly where the process is breaking down — and what to fix first.
Common red flags we see: Monthly closes taking 3+ weeks, accruals recorded inconsistently, revenue recognized in the wrong period, and TTM financials that can't withstand transaction-level scrutiny.
Checklist Progress0 of 20 completed
1
Accrual Accounting & Revenue Recognition
  • Revenue is recognized in the period it was earned, not when cash is receivedCritical
  • All accrued expenses are recorded prior to close (payroll, rent, utilities, etc.)Critical
  • Deferred revenue is properly tracked and released in the correct periodImportant
  • Prepaid expenses are being amortized on scheduleImportant
  • Accrual entries are reviewed and approved before books are closedCritical
2
Month-End Close Process & Timeline
  • Month-end close is completed within 5–7 business days of period endCritical
  • A documented close calendar exists and is followed consistentlyImportant
  • All departments submit their data on time to support the closeImportant
  • Prior period adjustments are rare and documented when they occurImportant
  • Close process has clear ownership and accountabilityGood Practice
3
Bank Reconciliations & Balance Sheet
  • All bank accounts are reconciled monthly with no unresolved itemsCritical
  • Balance sheet accounts are reviewed and reconciled each periodCritical
  • Accounts receivable aging is reviewed and bad debt reserve is updatedImportant
  • Fixed asset schedules and depreciation are updated monthlyImportant
  • Intercompany transactions are eliminated and reconciledGood Practice
4
Reporting & Financial Visibility
  • Monthly financials include P&L, balance sheet, and cash flow statementCritical
  • Actuals are compared to budget and prior period with variance commentaryCritical
  • TTM financials are accurate and can withstand investor or transaction scrutinyCritical
  • Board reporting package is ready within 10 business days of period endImportant
  • KPIs and operational metrics are tracked and included in reportingGood Practice

How did your portfolio company score?

If you found gaps in this checklist, you're not alone — most PE-backed companies do. We offer a free consultation to walk through exactly where things stand and what to prioritize. We sign NDAs upfront so the conversation is completely confidential.

🔒 NDAs signed upfront · No obligation · Confidential