A five-day group close for 3 to 30 companies
A day-by-day plan that holds up when one subsidiary is late. Who does what, where the cut-offs fall and when to lock the month.
In this post 7 sections
In short
A group of 3 to 30 companies can close in five working days when the calendar, cut-offs and rates are fixed before month-end. Subsidiaries send their books on day 1, the group checks and compares on day 2, translates on day 3, eliminates on day 4, then reviews and locks the month on day 5.
Key takeaways
- Fix the calendar before month-end. The cut-off, the rate source and the intercompany list are agreed in the last week of the month, not during the close.
- One job a day. Books in, mapped, rates, eliminate, report. Each day ends with a check before the next one starts.
- A late subsidiary gets a documented estimate, then a true-up. The group close does not wait for it.
- Lock the month at sign-off. Later changes are dated adjustments in the open month.
Can a group of 3 to 30 companies close in five working days?
Yes, if two conditions hold. Each company keeps its routine entries (accruals, depreciation, bank reconciliations) up to date during the month, so that day 1 is a finishing day and not a starting day. And the group knows before month-end what it will ask for. A group that cannot meet the first condition should add days in front of the plan for its subsidiaries and leave the group days as they are.
Five roles carry the close.
- Subsidiary accountant, one in each company: posts the entries, locks the company’s month and sends the trial balance.
- Group controller: checks every trial balance, compares intercompany, translates, eliminates and prepares the pack.
- Intercompany owner, the accountant in whichever company is behind on a pair: clears the difference.
- Group CFO: reviews the numbers and signs off.
- Second reviewer: checks the pack against the checklist. It should not be the person who prepared the eliminations.
What should be agreed before month-end?
Most late closes are decided in the last week of the month. These five items take an hour to agree and save days.
- The calendar and cut-off. One date and one time for every company, sent in writing and stated in the parent’s time zone. For a UK parent with companies in the US, the UAE and Singapore, noon London time in September is 07:00 in New York, 15:00 in Dubai and 19:00 in Singapore. Mark each country’s public holidays on the calendar, so that day 1 means the same working day everywhere.
- The rate source. Where the closing and average rates come from, who publishes them and on which day.
- The intercompany list. Every pair, the account each side uses, and the threshold above which a difference is chased.
- Cover. Who closes each company if its accountant is away.
- Intercompany invoices. A reminder that invoices, recharges and loan interest between group companies are raised before the cut-off.
Free: Group month-end close checklist
This free Excel checklist lays out a five-day group close task by task, with an owner, a company and a due date for each. Due dates follow the month-end date you enter, and a progress sheet shows the percentage complete for each day. It is built for groups of 3 to 30 companies.
- Thirty tasks, from the week before month-end to locking the month on day 5.
- An owner and a company for every task, ready to rename.
What happens on each of the five days?
Exhibit 1 is the whole calendar. Day 1 is the first working day after month-end.
| Calendar, cut-off, rate source and intercompany list agreed | Before month-end |
| Books in: every company posts its last entries, locks its month and sends its trial balance | Day 1 |
| Mapped: each trial balance is checked, new accounts are matched, intercompany pairs are compared | Day 2 |
| Rates: corrections are posted by noon, foreign subsidiaries are translated, the reserve is checked | Day 3 |
| Eliminate: intercompany, investments, unrealised profit and non-controlling interest | Day 4 |
| Report: review, sign-off, pack issued, month locked | Day 5 |
Day 1: books in
Each subsidiarySubsidiaryA company that is controlled by another company, its parent.Open the glossary entry accountant posts the last accruals, prepayments, payroll and depreciation, reconciles bank accounts, confirms intercompany balances by counterpartyCounterpartyThe other group company in an intercompany balance or transaction.Open the glossary entry in the transaction currency, locks the month and sends the trial balanceTrial balanceA list of every account balance at a date, with total debits equal to total credits. It is the starting point for consolidating a company's figures.Open the glossary entry by the close of the day. The group controller publishes the month’s closing and average rates, and names any company that will miss the cut-off before noon.
Day 2: mapped
The group controller checks each trial balance: the right period and currency, debits equal to credits, and opening balances that agree with last month’s closing. New accounts are matched to the group chart. Every intercompany pair is compared and each difference is given a cause and an owner. Correction requests go out the same day.
Day 3: rates
Subsidiary accountants post corrections and late entries by noon London time, which is 07:00 in New York, 15:00 in Dubai and 19:00 in Singapore. A company far ahead of or behind the parent agrees an earlier local time in advance. After that the books are frozen for the close. The group controller translates each foreign subsidiary at the group rates and checks the movement in the translation reserveTranslation reserveThe part of group equity that holds exchange differences from translating a foreign subsidiary into the group's currency.Open the glossary entry against the move in the rates. A movement that does not fit the rates usually means a wrong rate or a missing balance.
Day 4: eliminate
The group controller records items in transit as consolidation adjustments, eliminates the agreed intercompany balances and transactions1, eliminates each investment against the subsidiary’s equity, updates the non-controlling interestNon-controlling interestThe share of a subsidiary's equity and profit that belongs to owners outside the group.Open the glossary entry and removes unrealised profitUnrealised profitProfit one group company has recorded on a sale to another while the buyer still holds the goods.Open the glossary entry on stock held inside the group. The day ends with two checks: the group balance sheet balances, and group cash agrees to the banks.
Day 5: report
The group CFO reviews movements against last month and the budget and asks about anything above the threshold. The statistical accounts and KPIs are updated. A second reviewer checks the pack against the checklist. The CFO signs off, the pack is issued and the month is locked. The group controller lists the open items for next month, each with an owner.
How should rates and intercompany be handled in the close?
Rates are the simplest control. Publish one closing rateClosing rateThe spot exchange rate on the last day of the reporting period, used to translate a foreign subsidiary's assets and liabilities.Open the glossary entry and one average rateAverage rateThe exchange rate for a period, usually the month, used to translate a foreign subsidiary's income and expenses into the group's presentation currency.Open the glossary entry for each currency on day 1, and have every company and every report use them2. Two companies using two rates for the same currency is the most common cause of a rate difference between intercompany balances.
Intercompany follows the routine in why intercompany balances never agree. Compare on day 2, correct coding errors on day 3, record items in transitIn-transit itemsItems recorded by one company that the other has not yet recorded at the period end, such as an invoice, a payment or goods.Open the glossary entry as adjustments and make the elimination entriesElimination entryA group-level entry that removes balances and transactions between group companies.Open the glossary entry on day 4. Whatever is left goes on the open list with an owner and a date.
What do you do when a subsidiary is late?
Close without it, using a documented estimate, and replace the estimate when the real figures arrive. The steps below keep the estimate honest.
- Flag it early. The late company is named by noon on day 1, so the estimate can start while the others are still sending books.
- Build the estimate from facts. Use last month’s trial balance, the bank balance and sales for the month, and the budget. Write down the basis, the amount and who prepared it.
- Post it as a tagged consolidation adjustment, such as “Estimate: Quillfern GmbH”. Do not post it in the subsidiary’s own books.
- Say so in the pack. The pack states which company’s figures are estimated and by how much.
- True up when the actual arrives. Reverse the estimate and load the real trial balance. If the month is still open, the difference falls in that month. If it is locked, book the difference in the next month as a dated adjustment, unless it is above the amount the CFO has set, in which case the month is reopened with approval.
What does the review check, and when is the month locked?
The review on day 5 asks the same questions every month. Does the group balance sheet balance? Does cash agree to the banks? Is every intercompany pair eliminated, apart from the items on the open list? Does the translation reserve move in line with the rates? Are the changes against last month and the budget above the threshold explained?
Keep the working papersWorking papersThe schedules behind the group figures: mapping, translation, eliminations and reconciliations. They let a reviewer trace any group number back to the companies' books.Open the glossary entry that answer each question with the pack, so a reviewer can trace any group number to the companies’ books. The month is locked after sign-off. From then on a change is a dated adjustment in the month that is open, with a note of what it corrects and who approved it. A task list that follows these steps is in the group month-end close checklist.
Questions
How long should a group close take?
Many groups of 3 to 30 companies can reach five working days once the calendar is fixed and the routine entries are made during the month. A group that now takes ten days should fix the calendar first, then shorten one stage at a time, usually by moving the intercompany comparison earlier.
Who should approve the month?
Someone other than the person who prepared the eliminations: the group CFO, a second reviewer, or both. The preparer lists the open items and the approver signs. Separating the two is the simplest control a group can have.
Can a month be reopened after it is locked?
Avoid it. Book the change as a dated adjustment in the open month and note what it corrects. Reopen only when the amount is above a limit the CFO has set, and record who approved it.
Sources
- IFRS 10 Consolidated Financial Statements, paragraph B86(c) (intragroup balances, transactions, income and expenses are eliminated in full).
- IAS 21 The Effects of Changes in Foreign Exchange Rates, paragraphs 39 and 40 (translation at the closing rate and at an average rate).
Prabhu, A. (2026, 7 October). A five-day group close for 3 to 30 companies. The Finconsol Blog. https://finconsol.com/blog/five-day-group-close/
Amit Prabhu leads Finconsol at Aaxonix Tech, a Zoho and NetSuite implementation partner based in Pune, India. He works with multi-company groups and the accountants who serve them on closing many sets of books into one set of group numbers.