Monthly close at an OHADA SME: the methodical 12-step checklist

Why monthly close is non-negotiable

AUDCIF requires monthly centralization of auxiliary journals (Article 20). This implies accounting kept up to date at least month by month.

Beyond the legal obligation, monthly close is the only way to have an actionable P&L and balance sheet during the year. Without it, steering rests on estimates.

A rigorous close at M+10 (10 days after month-end) signals finance-function maturity. It's also the horizon audit firms target to measure a client's internal control level.

Steps 1 to 4: current operations

Step 1, post every supplier invoice received in the month. Including those that arrived in the first days of the following month but cover services delivered in the closing month (cut-off principle).

Step 2, issue every customer invoice for the month and book it. No sale should be left in a drawer.

Step 3, reconcile every bank and Mobile Money account. Every transaction on the statement must have its accounting entry, and vice versa.

Step 4, post expense reports, petty cash, payroll entries for the month.

Steps 5 to 8: provisions and adjustments

Step 5, calculate prepaid expenses (CCA) and deferred revenue (PCA). Rent paid in advance, an invoice issued for a future service. Re-impute the share that doesn't relate to the closed month.

Step 6, calculate accrued expenses (FNP). A service consumed without an invoice received: to be provisioned for the matching principle.

Step 7, post the month's depreciation. One twelfth of the annual charge per asset.

Step 8, assess risk provisions (litigation, warranties, doubtful customer impairments).

Steps 9 to 12: controls and publication

Step 9, centralize auxiliary journals into the general journal (AUDCIF Article 20). Now usually automated in modern accounting software.

Step 10, run consistency checks. Balanced trial balance. Cleaned third-party accounts. Emptied suspense accounts. VAT consistent between the sales journal and the purchases journal.

Step 11, produce interim financial statements: trial balance, auxiliary balance, monthly P&L, provisional balance sheet.

Step 12, publish the management commentary to decision-makers. Month-over-month evolution, attention points, refreshed forecast. That's what decision-makers actually want.

How Procura supports the close

Procura ships a native monthly-close module on Comptia. Every checklist step is tracked, with a checkbox and an owner.

Automatic controls run pre-flight before close approval: trial balance, suspense account balances, AUDCIF centralization, FNP and CCA monitoring.

Once the close is approved, the module locks the month's entries (no further changes possible) and produces interim statements in one click. The month is officially closed and auditable.