Closing the books at month-end is more than just ticking off journal entries. For contractors, a well-structured month end close checklist construction process is essential. It goes beyond basic accounting — involving job cost validation, WIP reporting, revenue recognition, billing accuracy, and close coordination across project managers, accounting, and operations.

Below is a comprehensive checklist broken down by function, with an emphasis on job-level accuracy, ASC 606 compliance, and project-based forecasting.

➡️ ASC 606 Revenue Recognition for Contractors

✅ 1. Preliminary Review

  • Freeze prior-month financials (close prior period)
  • Send reminders to project managers and site supervisors to submit cost updates
  • Review open POs, subcontracts, and change orders for completeness
  • Verify that all approved timesheets and field reports are submitted

✅ 2. Job Cost Validation

  • Reconcile job costs: labor, materials, equipment, and subcontractor expenses
  • Match supplier and subcontractor invoices to commitments
  • Allocate indirect costs to jobs (e.g., insurance, supervision, rentals)
  • Review committed costs vs actuals for material variances
  • Flag cost overruns for further investigation

✅ 3. Cost-to-Complete (CTC) & Forecasting

  • Collect updated Cost to Complete and Percent Complete estimates from project managers
  • Review variances between last month’s forecast and actuals
  • Update projected gross margin per job
  • Prepare internal forecast summary by region/project/client

➡️ Cost to Complete Construction – Full Guide

✅ 4. Work-in-Progress (WIP) Reporting

  • Update WIP schedule with current CTC and percent complete
  • Calculate earned revenue using percent complete or cost-to-cost method (ASC 606)
  • Identify over/under billings
  • Roll up job-level data for division- or company-wide WIP summary
  • Prepare bonding-ready WIP report if needed

➡️ Work-in-Progress Construction – Complete Guide

✅ 5. Revenue & Billing

  • Generate and review progress billings / AIA applications
  • Confirm billing aligns with project progress and contract terms
  • Recognize revenue using ASC 606-compliant methodology
  • Verify all change orders are approved and billed appropriately

✅ 6. Payroll & Labor Review

  • Ensure all timesheets and job cost allocations are entered
  • Reconcile labor burden (taxes, benefits, workers comp)
  • Allocate payroll costs to correct jobs and cost codes

✅ 7. General Ledger & Reconciliations

  • Reconcile bank accounts, credit cards, and petty cash
  • Review and reconcile accounts payable and receivable
  • Post all accruals, depreciation, and prepaids
  • Review trial balance for anomalies or errors

✅ 8. Reporting & Analysis

  • Prepare updated job profitability reports
  • Review margin erosion trends or change order delays
  • Generate budget vs. actual reports for each project
  • Review cash flow projections, especially on overbilled jobs

✅ 9. Controller Sign-Off

  • Finalize WIP, trial balance, and financial statements
  • Lock period in ERP/accounting system
  • Circulate internal close report to CFO and operations
  • Document key assumptions and unusual items for audit trail

Optional Add-Ons (Digital / Automated Tracking)

If using tools like PivotXL, Procore, or Monday.com, you can:

  • 🔄 Automate status updates for each task in the checklist
  • 🧮 Connect Excel reports to live job cost and billing data
  • 👥 Assign checklist items to team members with due dates
  • 🧾 Maintain a log of who updated CTC, forecasts, or WIP figures

Download the Template

📝 Download Excel Month-End Close Checklist – Construction Edition

👉 Related Reads
➡️ Work-in-Progress Construction – Complete Guide
➡️ Cost to Complete Construction – Full Guide
➡️ ASC 606 Revenue Recognition for Contractors
➡️ Budgeting Process in Excel – Step-by-Step Guide
➡️ Mapping Trial Balance to Financial Statements in Excel