Month-by-Month Habits That Make Year-End Close a Breeze

Year-end close can feel like it’s far away, but it will be here before we know it! The good news is that a few consistent monthly best practices can make June and July far more manageable. By building these habits into your regular routine, you’ll reduce surprises, save time, and keep stress levels (and inboxes) under control.

Here are some smart, manageable steps you can take each month to stay year-end ready.

Reconcile Early, Reconcile Often

Monthly reconciliations are the single most effective way to prepare for year-end. Review your reports and reconciliations as soon as the month closes. Catching errors early, things such as misposted transactions, missing charges, or timing issues, means fewer headaches later when deadlines are tighter and volumes are higher.

Review Transactions with a Critical Eye

Don’t just confirm that transactions posted, make sure they posted correctly. Each month, review expenses for:

• Correct account and object code usage
• Ensure that transactions are reviewed for appropriate business purpose and documentation
• Review transactions for allowable and allocable costs
  • Allowable – Ask yourself, “Is this cost permitted?” An expense is allowable if it is permitted under policies, regulations, grant terms, and funding restrictions. In other words, it’s an appropriate and acceptable cost for the specific funding source and account being used.
  • Allocable - “Does this cost belong here?” An expense is allocable if it can be reasonably assigned to a specific project, department, or activity based on the benefit received. The cost should directly support the purpose of the account being charged and be distributed in proportion to that benefit.

Addressing questionable items now prevents last-minute corrections or audit concerns later.

Keep PCard and Travel Activity Current

Unreconciled pcard and travel transactions have a way of piling up when left unattended. Make it a monthly goal to:

• Reconcile all pcard transactions promptly and in accordance with policy and process
• Submit and approve travel reimbursements on time
• Follow up on missing receipts or documentation
• Ensure travel expense reports are filed in a timely manner and remember, any reimbursement over 60 days must be reported as taxable income in accordance with IRS regulations

A clean slate each month means no frantic searching through old emails in June.

Monitor Budgets and Commitments

Year-end close isn’t just about expenses, it’s also about knowing where your budget stands. Regularly review:

• Budget vs. actuals
• Open encumbrances or commitments
  • Ensure completed PO’s are final closed
  • Review PO’s for any outstanding invoices that may still need to be processed
• Known upcoming expenses that need to occur before yearend
  • Remember to assess whether you need to record a prepaid for any expense

If adjustments are needed, addressing them early gives you flexibility and avoids rushed decisions at year-end.

Track Corrections and Adjustments

If you submit journal entries, cost transfers, or corrections during the month, review to ensure they have posted. Knowing what’s been submitted, approved, or still pending helps ensure nothing falls through the cracks as deadlines approach.

Think of it as a breadcrumb trail for future you.

Stay Ahead of Communications and Deadlines

Central Finance shares important reminders, cutoff dates, and procedural updates throughout the year. Reviewing these monthly assures there are no surprises when year-end rolls around.

When in doubt, ask early, questions are always easier to answer in March than in June or July.

The Big Picture

Year-end close isn’t a single event, it’s the result of many small, steady actions taken throughout the year. By building these monthly best practices into your routine, you help ensure a smoother close for your department/planning unit and for the university as a whole.

Consistency now = calm later. And that’s a formula everyone can get behind.

Questions?

If you have any questions please reach out to financecustomercare@ohio.edu