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Month-End Close Reconciliation Checklist

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.

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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

Full walkthrough with worked examples: Month-End Close Reconciliation Checklist for Indian Finance Teams.

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This checklist plus the variance-classification reference, four operational CSV templates, and a calculator index — packaged as one download.