lerianstudio/financial-close

Financial Close Workflow

This skill provides a structured workflow for month-end and year-end close using the accounting-specialist agent.

Workflow Overview

The financial close workflow follows 6 phases:

| Phase | Name | Description | |-------|------|-------------| | 1 | Pre-Close | Prepare for close, gather data | | 2 | Transaction Processing | Complete period transactions | | 3 | Reconciliations | Reconcile all accounts | | 4 | Adjustments | Post adjusting entries | | 5 | Review | Quality review and sign-off | | 6 | Finalization | Close period, prepare reports |

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Phase 1: Pre-Close

MANDATORY: Complete pre-close checklist before proceeding

Pre-Close Tasks

| Task | Description | |------|-------------| | Calendar review | Confirm close dates | | Cutoff communication | Notify stakeholders of deadlines | | Open items review | Identify carryover items | | System readiness | Verify system availability |

Pre-Close Checklist

| Item | Status | |------|--------| | Prior period closed | Required | | Subledgers ready | Required | | Bank statements received | Required | | Intercompany confirmed | Required | | Cutoff communicated | Required |

Blocker Check

If ANY of these are missing, STOP and ask:

• Prior period closed
• Bank statements available
• Key source data ready
• System access confirmed

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Phase 2: Transaction Processing

MANDATORY: Complete all period transactions

Transaction Types

| Type | Description | |------|-------------| | Revenue | Sales, services, other income | | Expenses | Operating, non-operating | | Payroll | Salaries, benefits, taxes | | Inventory | Receipts, shipments, adjustments | | Fixed Assets | Additions, disposals, depreciation |

Cutoff Procedures

| Area | Procedure | |------|-----------| | Revenue | Review shipments around period end | | Expenses | Review invoices received post-close | | Payroll | Confirm payroll period alignment | | Inventory | Physical count if applicable |

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Phase 3: Reconciliations

MANDATORY: Reconcile ALL balance sheet accounts

Agent Dispatch

Task tool:
  subagent_type: "ring:accounting-specialist"
  prompt: |
    Perform period-end reconciliations:

    **Period**: [close period]
    **Entity**: [entity name]

    **Accounts to Reconcile**:
    - Cash and bank accounts
    - Accounts receivable
    - Inventory (if applicable)
    - Prepaid expenses
    - Fixed assets
    - Accounts payable
    - Accrued expenses
    - Intercompany (if applicable)
    - Debt

    **Prior Period Workpapers**: [attached]

    **Required Output**:
    - Reconciliation for each account
    - Reconciling items identified
    - Supporting documentation
    - Sign-off status

Reconciliation Standard

| Element | Requirement | |---------|-------------| | GL balance | From trial balance | | Subledger/Bank | From supporting system | | Reconciling items | Each item explained | | Support | Documentation attached | | Sign-off | Preparer and reviewer |

Required Reconciliations

| Category | Accounts | |----------|----------| | Assets | Cash, AR, Inventory, Prepaid, Fixed Assets | | Liabilities | AP, Accruals, Debt, Intercompany | | Equity | Retained Earnings, Other Comprehensive Income |

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Phase 4: Adjustments

MANDATORY: Post all adjusting entries with documentation

Adjustment Types

| Type | Description | |------|-------------| | Accruals | Expenses incurred not yet recorded | | Deferrals | Cash received/paid for future periods | | Estimates | Reserves, allowances, impairments | | Corrections | Error corrections | | Reclassifications | Account reclasses |

Journal Entry Standard

| Element | Requirement | |---------|-------------| | Entry number | Unique identifier | | Date | Period end date | | Description | Clear rationale | | Accounts | Debits and credits | | Support | Documentation attached | | Approval | Required before posting |

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Phase 5: Review

MANDATORY: Quality review before closing

Review Checklist

| Check | Validation | |-------|------------| | Trial balance foots | Total debits = credits | | All recs complete | Every account reconciled | | All entries posted | No pending entries | | Variances explained | Material changes documented | | Controls completed | SOX controls if applicable |

Review Levels

| Level | Reviewer | Focus | |-------|----------|-------| | Self-review | Preparer | Accuracy, completeness | | Peer review | Another accountant | Independent verification | | Manager review | Controller | Reasonableness, policy | | Final review | CFO | Overall quality |

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Phase 6: Finalization

MANDATORY: Complete close procedures

Finalization Tasks

| Task | Description | |------|-------------| | Period lock | Prevent further posting | | Reports generated | Trial balance, financials | | Workpapers filed | Documentation archived | | Close memo | Summary of significant items |

Close Deliverables

| Deliverable | Description | |-------------|-------------| | Trial Balance | Final, adjusted | | Financial Statements | IS, BS, CF | | Reconciliation Package | All reconciliations | | Close Memo | Summary and issues |

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Pressure Resistance

See shared-patterns/pressure-resistance.md for universal pressures.

Close-Specific Pressures

| Pressure Type | Request | Agent Response | |---------------|---------|----------------| | "Skip that reconciliation" | "All accounts must be reconciled. I'll complete the reconciliation." | | "Post without approval" | "Entries require approval before posting. I'll obtain approval." | | "Close now, fix next month" | "Errors compound. I'll correct before close." | | "Immaterial, don't worry" | "Materiality requires documentation. I'll document the item." |

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Anti-Rationalization Table

See shared-patterns/anti-rationalization.md for universal anti-rationalizations.

Close-Specific Anti-Rationalizations

| Rationalization | Why It's WRONG | Required Action | |-----------------|----------------|-----------------| | "Same entry as last month" | Each period independent | VERIFY current validity | | "Reconciling item will clear" | Items need investigation | INVESTIGATE now | | "Small balance, skip rec" | All accounts need rec | RECONCILE all accounts | | "Prior period was fine" | Each close independent | COMPLETE all steps |

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Execution Report

Upon completion, report:

| Metric | Value | |--------|-------| | Duration | Xm Ys | | Journal Entries | N posted | | Reconciliations | N/N complete | | Adjustments | N | | Review Sign-offs | N/N | | Result | CLOSED/PARTIAL |

Quality Indicators

| Indicator | Status | |-----------|--------| | All accounts reconciled | YES/NO | | All entries approved | YES/NO | | All reviews complete | YES/NO | | Period locked | YES/NO | | Workpapers filed | YES/NO |