Period Closing Checklist

Overview

Complete these tasks at the end of each accounting period to ensure accurate financial records before closing the period.

Accounting period depends on your organization’s configuration:

MONTHLY: Close every month
QUARTERLY: Close every 3 months
YEARLY: Close annually

See: Organization Settings

Pre-Close Checklist

Record all transactions

Ensure all financial activity for the period is recorded:

✅ All deposits received
✅ All loan payments collected
✅ All loan disbursements made
✅ All expenses paid
✅ All bank fees recorded
✅ No pending/unrecorded transactions

Verify: Check with treasurer that all cash collected has been entered.

Reconcile bank accounts

Match Agatabo records to actual bank balances:

Download bank statements for all organization bank accounts
Compare statement ending balance to Agatabo cash/bank account balance
Identify differences:
- Uncleared checks/deposits
- Bank fees not yet recorded
- Interest earned
- Errors (data entry mistakes)
Record adjustments:
- Bank fees → Record as expenses
- Interest → Record as income (manual journal entry)
- Correct errors
Verify reconciliation: Adjusted Agatabo balance = Bank statement balance

Tool: Use Account Statements report to review bank account activity

Review member balances

Spot-check member savings for accuracy:

Select 5-10 members randomly
Compare Agatabo balance to member passbooks/records
Investigate any discrepancies
Verify recent deposits/withdrawals recorded correctly

Tool: Use Shares Report to see all member balances

Verify loan portfolio

Ensure loan records are accurate:

Run Loans Outstanding report (as of period end date)
Verify total outstanding loans matches Loan Receivable ledger account balance
Identify overdue loans (arrears > 0)
Apply penalties if organizational policy requires automatic penalties
Document any loan modifications, waivers, or write-offs

Important: Reconcile loans BEFORE closing period to ensure accurate interest income calculation.

Generate financial statements

Run all reports as of period end date:Required reports:

Balance Sheet (as of last day of period)
Profit & Loss (for the entire period)
Shares Report (member ownership as of period end)
Loans Outstanding (portfolio status as of period end)

Export all reports to PDF or CSV for records.API endpoints:

GET /reports/balance-sheet?asOfDate=2026-06-30
GET /reports/profit-loss?startDate=2026-06-01&endDate=2026-06-30
GET /reports/shares-report?asOfDate=2026-06-30
GET /reports/loans-outstanding?expectedDate=2026-06-30

Review trial balance

Verify accounting equation balances:

Run Trial Balance (as of period end)
Check: Total Debits = Total Credits
Investigate any out-of-balance conditions
Verify retained earnings reflects prior period net income

If trial balance doesn’t balance: Do NOT close period. Find and correct errors first.

Review unusual items

Investigate anomalies before closing:

Large or unexpected expenses (> 10% of budget)
Unusual account balances (negative balances where not expected)
Significant variances from prior period (> 20% change)
Uncategorized or miscoded transactions

Document explanations for material items (for auditors, management).

Run period close preview

Simulate the close to verify impact:

GET /period-closing/preview
Headers:
  x-organization-id: {organizationId}

Review preview response:

Period being closed (verify correct period)
Net income/loss amount
Journal entry that will be created
Accounts that will be zeroed (INCOME/EXPENSE accounts)

Verify: Net income matches Profit & Loss report.

Get management approval

Present financial statements for approval:

Share reports with treasurer/board/management committee
Explain significant items, variances, concerns
Address questions and requests for additional detail
Obtain sign-off (written approval recommended)

Do not close until management approves the financial statements.

Closing the Period

Once all pre-close tasks complete and approval obtained:

Close the period

Execute period close via API:

POST /period-closing/close
Headers:
  x-organization-id: {organizationId}
  x-idempotency-key: {unique-key}

Permission required: periods:closeWhat happens:

Determines next period to close automatically
Creates PERIOD_CLOSE journal entry
Zeros all INCOME and EXPENSE accounts
Transfers net income to RETAINED_EARNINGS
Locks period (prevents further changes)

Confirm successful close: Check response status 200.

Verify period close results

Confirm close completed correctly:

Check audit logs: Period close action logged
Run Balance Sheet: Retained earnings increased by net income
Run Profit & Loss: Current period shows zero (new period started)
Check INCOME/EXPENSE accounts: All have zero balances

If something wrong: Use undo endpoint (can only undo LAST close)

Post-Close Tasks

Archive documentation

Preserve period records:

Save all reports to archive folder (named by period, e.g., “2026-06-June”)
File physical receipts and supporting documents
Export journal entries for period (for audit trail)
Backup database

Retention: Keep closed period records for 7+ years (varies by jurisdiction).

Communicate to members

Share period results with membership:

Publish Balance Sheet (shows financial position)
Publish Profit & Loss (shows period performance)
Publish Shares Report (shows member ownership percentages)
Announce dividend distribution if applicable

Method: Email, member meeting, posted notice

Plan for next period

Prepare for upcoming period:

Review budget vs. actual (identify variances)
Adjust budget for next period if needed
Schedule loan committee meetings
Plan any needed reserve allocations
Identify operational improvements

Timeline Examples

Monthly Close (accountingPeriod: MONTHLY)

Day	Task
Last business day	Record final transactions for month
1st of next month	Download bank statements, begin reconciliation
2-3	Complete reconciliation, run reports, review
4-5	Present to management, obtain approval
5-7	Close period, verify, archive

Total time: 5-7 days after month end

Quarterly Close (accountingPeriod: QUARTERLY)

Day	Task
Last week of quarter	Ensure all transactions recorded
1-2 days after quarter	Download statements, begin reconciliation
3-7	Complete reconciliation, run reports, review
7-10	Present to management, obtain approval
10-14	Close period, verify, archive

Total time: 10-14 days after quarter end Note: Quarterly closes typically require more review time due to larger data volume.

Yearly Close (accountingPeriod: YEARLY)

Week	Task
1-2	Record all transactions, reconcile all accounts
2-3	Run all reports, prepare annual statements
3-4	Review with accountant, prepare for audit
4-6	Present to board, obtain approval
6-8	Close period, finalize annual report

Total time: 6-8 weeks after year end Note: Annual closes often require external audit before finalizing.

Common Issues and Solutions

Trial balance doesn't balance

Problem: Total debits ≠ total creditsCommon causes:

Journal entry missing debit or credit side
Data entry error (transposed digits)
Manual journal entry not balanced
System bug (rare)

Solution:

Run Trial Balance report with details
Calculate difference amount
Search journal entries for that exact amount
Review recent manual entries
Correct error before closing

Loans don't reconcile to ledger

Problem: Loans Outstanding total ≠ Loan Receivable account balanceCommon causes:

Loan payment recorded incorrectly
Principal/interest allocation error
Loan created but not properly recorded
Missing loan disbursement entry

Solution:

Run Loans Outstanding report
Check Loan Receivable ledger account balance
Calculate difference
Review recent loan transactions
Verify loan disbursements created journal entries
Correct discrepancies before closing

Bank reconciliation won't balance

Problem: Agatabo cash balance ≠ bank statement balanceCommon causes:

Unrecorded bank fees
Deposits not yet cleared
Checks not yet cashed
Data entry errors

Solution:

List outstanding checks (issued but not cleared)
List deposits in transit (recorded but not cleared)
Identify bank fees not recorded in Agatabo
Record fees as expenses
Calculate: Agatabo balance + deposits in transit - outstanding checks = Bank balance

Can't close period - error message

Error: “Cannot close period” or similarCheck:

Do you have periods:close permission?
Is x-organization-id header set correctly?
Is x-idempotency-key header provided?
Is there already a close in progress?
Are there validation errors (unbalanced entries)?

Solution: Check error message details, verify permissions, ensure all prerequisites met.

Need to undo period close

Situation: Discovered error after closing periodSolution:

POST /period-closing/undo
Headers:
  x-organization-id: {organizationId}
  x-idempotency-key: {unique-key}

Limitations:

Can only undo LAST period closed
Cannot undo arbitrary historical periods
Reverses PERIOD_CLOSE journal entry
Reopens period for corrections

After undo: Make corrections, then re-close period.

Best Practices

Period closing guidelines:Before closing:

✅ Complete ALL steps in checklist (don’t skip)
✅ Reconcile ALL bank accounts (not just main account)
✅ Verify trial balance balances
✅ Get management sign-off
✅ Run preview to verify period close impact
✅ Archive current reports before closing

During closing:

✅ Use unique idempotency key (prevent duplicate close)
✅ Close during low-activity time (minimize disruption)
✅ Notify users period close is in progress
✅ Verify close completes successfully

After closing:

✅ Verify period close results immediately
✅ Check retained earnings updated correctly
✅ Confirm INCOME/EXPENSE accounts zeroed
✅ Archive all period reports
✅ Communicate results to members

General:

✅ Close periods promptly (within 7 days of period end)
✅ Don’t skip periods (close sequentially)
✅ Document significant items for auditors
✅ Keep closed period records for 7+ years
✅ Train backup staff on closing procedures

Period Closing

Period close API documentation

Balance Sheet

Financial position report

Profit & Loss

Income statement

Audit Trail

Track period close activity

​Overview

​Pre-Close Checklist

​Closing the Period

​Post-Close Tasks

​Timeline Examples

​Monthly Close (accountingPeriod: MONTHLY)

​Quarterly Close (accountingPeriod: QUARTERLY)

​Yearly Close (accountingPeriod: YEARLY)

​Common Issues and Solutions

​Best Practices

​Related Topics

Period Closing

Balance Sheet

Profit & Loss

Audit Trail

Overview

Pre-Close Checklist

Closing the Period

Post-Close Tasks

Timeline Examples

Monthly Close (accountingPeriod: MONTHLY)

Quarterly Close (accountingPeriod: QUARTERLY)

Yearly Close (accountingPeriod: YEARLY)

Common Issues and Solutions

Best Practices

Related Topics