A reliable close process is the foundation of trustworthy numbers. Use this checklist to close your books faster and with fewer errors.
A consistent month-end close is what separates books you can rely on from books you hope are right. Here's the checklist we use as a starting point with every client.
Reconcile every cash account
Bank accounts, credit cards, payment processors and loan balances should all tie to their statements. Unreconciled accounts are where errors hide.
Review accounts receivable and payable
Age your receivables, follow up on overdue invoices, and confirm every bill received has been recorded — even if it hasn't been paid.
Record accruals and prepaid expenses
Match expenses to the month they relate to. This is the step that turns cash-basis bookkeeping into accrual-basis accounting.
Review the P&L and balance sheet for anomalies
Compare against last month and the same month last year. Large swings should have an explanation.
Lock the period
Once reviewed, close the period in your accounting software so historical numbers can't be changed by accident.