Monthly bookkeeping
close checklist
The 12-step process professional bookkeepers follow every month to close the books accurately. Use this as your guide — or let us handle it for you.
Reconcile all bank accounts
Match every transaction in your accounting software to your bank statement. Investigate and resolve any discrepancies. Every penny should match.
Reconcile credit card accounts
Same process for every business credit card. Ensure all charges are recorded, categorized, and matched to the statement balance.
Review and categorize uncategorized transactions
Clear out any transactions sitting in 'Uncategorized Expense' or 'Ask My Accountant.' Every transaction needs a proper category.
Record accounts receivable
Ensure all invoices sent during the month are recorded. Mark paid invoices as received. Follow up on overdue invoices.
Record accounts payable
Enter all bills received during the month. Record payments made. Ensure vendor balances are accurate.
Process payroll entries
Verify payroll was processed correctly. Record payroll journal entries including wages, taxes, and benefits. Reconcile payroll liability accounts.
Record depreciation and amortization
Book monthly depreciation for fixed assets and amortization for intangible assets. Keep your asset values accurate on the balance sheet.
Review prepaid expenses and accruals
Amortize prepaid expenses (insurance, rent paid in advance). Record accrued expenses (services received but not yet billed).
Reconcile sales tax liability
Verify sales tax collected matches what's owed. Prepare for upcoming sales tax filing. Ensure rates are correct by jurisdiction.
Review Profit & Loss statement
Compare to prior month and same month last year. Investigate unusual variances. Ensure revenue and expenses look reasonable.
Review Balance Sheet
Verify asset, liability, and equity balances are accurate. Check that retained earnings rolled forward correctly. Investigate any unexpected changes.
Generate and deliver financial reports
Produce final P&L, Balance Sheet, and Cash Flow Statement. Package for owner review, board meetings, or lender requirements.
Pro tips for a smooth monthly close
Set a recurring calendar reminder for the 5th of each month to start the close process
Keep a running list of questions/issues throughout the month instead of saving them for close
Reconcile weekly instead of monthly — it makes the close much faster
Use bank feeds to auto-import transactions daily (reduces manual data entry)
Create a standard chart of accounts and stick to it — consistency is key
Let us handle your monthly close — from $249/mo
Dedicated bookkeeper. All 12 steps handled. Financial reports delivered. All software included.