Enjoy complimentary data migration when switching from your existing bookkeeper or CPA to Institution.
Institution
Resources
Insights · 6 min read

What makes a monthly close reviewable

A reviewable close is not a close that has been performed. It is a close another accountant could sit down with and defend without asking the preparer any questions.

Why the distinction matters

A close that only the preparer understands is a close that stops the moment the preparer is unavailable. Reviewability is what turns a monthly ritual into an operating rhythm; it is also the difference between a book that supports a diligence request and one that becomes the diligence request.

The four properties of a reviewable close

Every reviewable close carries these four properties, in this order.

  • Source coverage: every material account has a documented source (bank, card, processor, payroll, invoicing) that a reviewer can trace without asking.
  • Reconciliation evidence: each reconciliation is retained with its statement, not just a checkbox on a task list.
  • Named exceptions: every unresolved item has an owner, a proposed treatment, and a review timing, before the close is called complete.
  • A defined deliverable: the pack that goes out at the end is the same shape every month, so a reviewer can compare periods without translation.

Records to retain

Reconciliations, exception log, sign-off record, and the reporting pack itself. Everything else is workpaper that can be regenerated; those four cannot.

What breaks it

Undocumented adjustments, exceptions that carry forward without an owner, and reporting formats that shift month to month. Each one erodes a reviewer's ability to trust the period without redoing the work.

Related

Use the monthly close checklist template alongside the Bookkeeping and Controller Support routes.