SOP example: Close the month
One of ten examples from our library of 150+ pre-made SOPs. Copy it, change it to how your company works, and give it an owner.
Scope
This SOP covers the monthly close for your company: confirming that invoices, payments and open balances for the month are complete and correct, and giving the owner one clear picture of the month. It starts on the first business day after month end. It ends when the owner has the approved close summary. It does not cover tax filings; check your state for any state rules.
Roles
- Finance lead: Owns the close, reviews the summary, fixes errors and approves anything that leaves the company, within the limits the delegation sets.
- Owner: Receives the close summary and decides on anything above the Finance lead's limit.
- Project managers: Confirm work done and billable for their projects and retainers when asked.
- The A/R agent: Lists every unpaid invoice, how late each is, and what to chase. Drafts chase emails for approval.
- The Cash view agent: Shows cash this week and next, using only the data from the accounts.
- The SOP writer agent: Keeps this SOP current and updates it when the steps change.
The steps
- On the first business day, confirm all payments received through month end are recorded.
- Ask each project manager to confirm the work done and billable for the month, including monthly retainers.
- Check that every billable item has an invoice. Create any missing invoices.
- Send any new invoices only after the person named in the delegation approves the exact text.
- Run the unpaid invoice list and sort it by how late each invoice is.
- Review the late invoices. Put the worst news first: the largest and oldest balances.
- Chase late invoices. Every chase email waits for approval of the exact text by the person the delegation names before it is sent.
- Review the cash view for this week and next. Note any gap between cash in and cash out.
- Write the close summary: what is owed, what is late, cash outlook, and open questions. Give the source for every number.
- Send the summary to the owner. Record the close as done once the owner has reviewed it.
KPIs
- Days to close: Count business days from month end to the owner receiving the approved summary. Target: set per business.
- Late invoices: Measure the share of invoice value that is past due at close, from the A/R list. Target: set per business.
- Missing invoices found: Count billable items without an invoice when the close starts. Target: set per business.
- Cash forecast accuracy: Compare the cash view for the week with actual cash received and paid. Target: set per business.
The AI-first version
- The A/R agent checks that all payments through month end are recorded and flags any that do not match an invoice (machine)
- The A/R agent asks each project manager to confirm billable work and lists replies still missing (machine)
- The A/R agent drafts any missing invoices from confirmed work. The Finance lead approves the exact text before anything is sent (assisted)
- The A/R agent builds the unpaid invoice list by lateness, with the worst balances first (machine)
- The A/R agent drafts chase emails for late invoices. The person named in the delegation approves the exact text before sending (assisted)
- The Finance lead decides what to do about disputed, very late or unusual balances (judgment)
- The Cash view agent prepares cash this week and next, with the source for each number (machine)
- The Finance lead reviews the draft close summary, bad news first, and checks every number against its source (assisted)
- The Owner reviews the close summary and decides on anything above the Finance lead's limit (judgment)
- Clients pay or reply to invoices and chase emails (external)
How to use this SOP
Run it for a month as written, then fix what didn't match reality. In the AI-first version, machine steps go to an agent, assisted steps are drafted by an agent and checked by a person, and judgment steps stay with a person.