Describe how you run a month-end close. How do you make sure nothing is missed and the deadline is met?
What the interviewer wants to hear
- Uses a close checklist with owners and due dates
- Cut-off for sales, purchases and inventory
- Accruals, prepayments, depreciation and provisions
- Reconciles bank, receivables, payables, tax and intercompany balances
- Reviews the trial balance and variances against budget or last month
Model answer
I run the close from a checklist that lists every task, the owner and the day it is due, for example day 1 for cut-off and day 5 for final reports. First I make sure all sales invoices, supplier bills and expense claims for the month are in, with correct cut-off. Then I book recurring entries: depreciation, prepayment amortisation, payroll and accruals for bills not yet received, using purchase orders and contracts. Next come reconciliations: bank, receivables and payables control accounts against sub-ledgers, GST and TDS accounts against returns, and intercompany balances. Then I review the trial balance and profit and loss against last month and budget and explain any big variance, which often catches missing or duplicate entries. Unresolved items go on a list with an owner. Over time I move steps earlier, like accruing during the last week, to shorten the close.
Can you answer it under time pressure?
Take a timed medium round and get scored on every answer.
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