Running a monthly close
The close checklist, the order that avoids rework, what the support matrix is telling you, and when a period is genuinely ready to lock.
How-toFor Bookkeepers, Firm staff, Business owners
What closing a month means
Closing a month means asserting that the period is complete: every transaction is recorded, every balance is supported, and the statements can be relied on. Locking the period then stops anything further being posted into it, so the statements stay reproducible.
The order that avoids rework
Each step depends on the ones above it. Working out of order means redoing the review after late items land.
- 1
Get all activity in.
Import or sync bank and card activity through month end. Chase outstanding bills and expense claims. Confirm every payroll run for the month has posted.
- 2
Clear the queues.
Exceptions to zero, Approvals to zero, and no uncategorized transactions left in any feed. A month cannot be complete while work is pending.
- 3
Reconcile every bank and card account.
Through the month-end statement, difference at zero, statement locked. This is the step that proves cash is complete.
- 4
Post period-end entries.
Accruals for costs whose bills have not arrived, prepaid amortization, depreciation, deferred revenue recognition, and any allocations.
- 5
Review the Balance Sheet line by line.
Every balance should be supported by something you could show a stranger. This is where errors surface.
- 6
Tie the subledgers.
A/R aging total equals the A/R control account; A/P aging equals A/P. Payroll liabilities agree to what is actually owed.
- 7
Read the Profit & Loss for reasonableness.
Compare to prior month and prior year. Anything that moved sharply should have an explanation you already know.
- 8
Lock the period.
- 9
Produce and distribute reporting.
Statements to owners, packages to lenders, portal publication for clients.
The support matrix
The close screen lists the accounts in the close with their ending balance, the month's activity, and whether the balance is supported — reconciled, backed by a statement, or backed by an attachment.
Period close · Northwind Trading
Monthly Close — July 2026
| Account | Ending balance | Month activity | Support |
|---|---|---|---|
| 1010 · Operating cash | $284,119.42 | 412 lines | Reconciled |
| 1200 · Accounts receivable | $96,140.00 | 38 lines | Aging tied |
| 1400 · Prepaid expenses | $14,200.00 | 2 lines | Attachment |
| 1500 · Fixed assets | $318,900.00 | 1 line | Balance lacking support |
| 2100 · Accrued liabilities | $22,480.00 | 6 lines | Balance lacking support |
| 2300 · Payroll liabilities | $8,914.20 | 12 lines | Statement |
Every account either has support or is flagged as lacking it. The flagged rows are the close.
- 1Account and ending balance
- 2Month activity
- 3Support status
Illustration of the screen layout
Common questions
A well-run small business close is a day or two, a few days after month end. If yours takes two weeks, the bottleneck is almost always upstream — transactions arriving late, or queues that were never worked during the month.
Closing weekly what you can close weekly is what makes the monthly close short.
If it is material and belongs to the closed period, that is what accruals are for — you should have accrued the expected cost. If it is not material, record it in the current period. Reopening a closed period should be rare.
Not technically, but statements you issue from an unlocked period can change afterwards. If you send numbers to anyone outside the business, lock first.
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