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Nonprofit Month-End Close Checklist
Month-end close can feel like a sprint, especially for small nonprofit finance teams juggling donations, grants, and multiple bank and credit card accounts. This nonprofit month-end close checklist gives you a repeatable accounting month-end process to capture every transaction, reconcile balances, and produce board-ready reports on time.
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Why a month-end close checklist matters for nonprofits & churches
A month-end close is more than “finishing the bookkeeping.” It’s how you make sure your financial statements reflect reality, including nonprofit financial transactions that can be easy to miss until later:
- Deposits and donation batches that haven’t hit the bank yet
- Restricted revenue and releases from restriction
- Grant activity that needs proper coding
- Payroll accruals, reimbursements, and recurring bills
- Balance sheet items (like prepaid expenses) that need adjusting entries
A consistent checklist reduces errors, shortens close time over the long run, and helps you trust your numbers when you need them most.
Month-end closing checklist
Use this nonprofit month-end close checklist to follow a consistent accounting month-end process and avoid missed nonprofit financial transactions.
Checks Written
Accounts Payable
Accounts Receivable
Payroll Entries
Journal Entries
Checklist Governance Notes
- Always have a supervisor approve and document
- Document procedure for adjustment
Run Reports
(Don’t just hit Print and file these reports. Review them to ensure the data is complete and accurate.)
Backup Reminder
Make sure to back up your data (if you’re NOT an Aplos customer; if you ARE an Aplos customer, we do that for you).
Make month-end close easier to repeat
Month-end close gets easier when your transactions are organized, your accounts reconcile cleanly, and your reports are easy to pull and review. If you’re looking for nonprofit-focused accounting workflows that support a consistent close process, Aplos is built for nonprofit finance teams managing funds, donations, and month-end reporting in one place.
For further assistance, check out our recorded webinar on monthly closing procedures. The suggestions in the video are helpful and applicable regardless of the accounting system you use.
Good luck, and always consult a CPA or trusted professional if you need tax or accounting advice.
Frequently Asked Questions
How long should a nonprofit month-end close take?
Many nonprofits aim to close within 5–10 business days, depending on transaction volume, staffing, and how quickly documentation is collected. A consistent checklist, clear deadlines, and standardized reconciliations usually reduce close time over time.
What’s the most important step in the month-end close process?
Start with bank and credit card reconciliations. If cash and clearing accounts aren’t right, everything downstream (revenue, expenses, restricted activity, and reporting) becomes harder to trust.
Should nonprofits use accrual accounting during month-end close?
Many nonprofits use accrual accounting for more accurate month-to-month reporting, especially for grants, payroll, and major vendor expenses. The right approach depends on your reporting needs, policies, and professional guidance, so confirm with your finance leadership or CPA.
What should we review before sending financials to the board?
At minimum, review Statement of Activities, Balance Sheet, and Budget vs. Actual, plus a short variance summary. Flag one-time items and explain meaningful changes so leadership focuses on decisions, not surprises.
How do we handle restricted funds during month-end close?
Make sure restricted gifts are coded consistently and that any releases from restriction are documented and recorded according to your organization’s policy. If restrictions are unclear, pause and resolve them early—fixing them months later is much harder.
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