Month-end close for an Indian finance team is four parallel reconciliation workstreams that must complete in sequence — bank, TDS, GST, and platform settlements — each with a different deadline, a different data source, and different consequences for delays.
01. Pre-close preparation
By the 25th of the month
- ☐ Download bank statements for all accounts, including intra-day for the 25th if possible
- ☐ Request TDS deduction details from accounts payable for the current month
- ☐ Download GSTR-2B as soon as available (generated on the 14th — use the prior month's final version)
- ☐ Collect platform settlement files from all active gateways
02. Bank statement vs cash book
Within 2 working days of month-end
- ☐ Match debits to payments via RTGS/NEFT/IMPS references
- ☐ Match credits to receipts via UTR reference or narration
- ☐ Identify outstanding cheques issued but not presented
- ☐ Record bank service charges and GST on bank charges to the correct ledger accounts
- ☐ Confirm closing balance and route unresolved items to a suspense account (5-day SLA)
03. TDS receivable vs Form 26AS
By the 10th of the following month
- ☐ Export the TDS receivable ledger by deductor TAN and section code
- ☐ Download updated Form 26AS from TRACES (allow a 7-day lag from challan deposit date)
- ☐ Match entries by deductor TAN + section code + quarter + amount
- ☐ Flag mismatches — wrong PAN, wrong section, amount difference above ₹100
- ☐ Request correction returns from flagged deductors
04. GSTR-2B vs purchase register
By the 15th (ahead of GSTR-3B on the 20th)
- ☐ Download GSTR-2B for the current filing period
- ☐ Compare each entry to the purchase register by GSTIN, invoice number, and amount
- ☐ Flag invoices in the purchase register but absent from GSTR-2B as pending supplier filing — do not claim ITC
- ☐ Add invoices present in GSTR-2B but not in the register, after verifying receipt
- ☐ Finalise the ITC claim amount for GSTR-3B from the reconciled figure only
05. Platform settlement verification
Before sign-off
- ☐ Download settlement files for all active gateways for the close period
- ☐ Verify order amounts net of MDR match the settlement credit
- ☐ Identify TCS deducted at 1% for marketplace sellers and match to the GSTR-2B credit
- ☐ Match settlement credits to bank account credits by UTR or settlement reference
- ☐ Document in-transit settlements (T+1 to T+3 lag) separately for next month's reconciliation
06. Exception classification and sign-off
Close of month
- ☐ Record each open exception: type, amount, responsible party, resolution deadline, materiality flag
- ☐ Route exceptions above the materiality threshold (typically ₹1 lakh for mid-size companies) to CFO review
- ☐ Confirm the date of final bank reconciliation for each account in the sign-off document
- ☐ Document TDS mismatches pending correction returns and ITC reversals made in GSTR-3B
- ☐ Record the approving authority's name and designation