What is a hard close?

A hard close is the complete, finalized month-end close with all reconciliations performed, adjusting entries recorded, and financial statements prepared and approved. Numbers are final and locked. Any subsequent changes require formal adjusting entries with documentation. The period is officially closed.

The hard close checklist

Bank accounts reconciled. Credit cards reconciled. AR/AP reviewed. Payroll accrued. Prepaids amortized. Depreciation recorded. Revenue verified. Intercompany reconciled if applicable—statements generated. Management approved. Each step was completed and documented.

Setting and holding deadlines

Day 7 is the target. Not day 7 unless something comes up. Day 7 period. Missing receipts get estimated. Late vendors get accrued. Process does not wait. Deadlines that slip are suggestions. Firm deadlines create discipline and predictability.