Month End Close Checklist for Small Businesses

Closing the books each month means making sure every transaction is recorded, every account is reconciled, and your reports are final. Businesses that close monthly make faster decisions and have far less stress at tax time. Here is a checklist you can follow.

Before you start

• Set a target close date, such as the tenth business day of the next month.
• Gather bank statements, credit card statements, loan statements, and payroll reports.

1. Record all income

Make sure every sale and invoice for the month is entered. Match deposits to invoices so nothing is counted twice.

2. Record all expenses

Enter every bill and receipt. Chase down missing receipts now, not in March.

3. Reconcile every bank and card account

Your book balance should match each statement. Investigate any difference, even a small one.

4. Review accounts receivable

List unpaid invoices by age. Follow up on overdue ones and decide whether any should be written off.

5. Review accounts payable

Confirm which bills are due and that nothing was paid twice.

6. Record payroll correctly

Match payroll reports to your books, including taxes and benefits.

7. Post adjusting entries

For accrual books, record expenses you owe but have not been billed for, revenue you earned but have not invoiced, prepaid expenses used during the month, and depreciation.

8. Review the reports

Read the profit and loss statement, balance sheet, and cash flow summary. Compare them to last month and to your budget. Anything that looks odd usually is.

9. Lock the period

Most accounting software lets you close a period so no one changes it by accident.

10. Share what you learned

Write three short notes: what went well, what needs attention, and what to watch next month.

Want someone else to do it?

Staffay’s Accounting plan ($899 per month) includes a formal month end close, adjusting entries, budget vs. actual reporting, and a plain language review of your results, for businesses anywhere in the U.S. If you only need steps 1 through 3 and your monthly reports, our Bookkeeping plan starts at $499.

Frequently asked questions