The Month-End Close Checklist

Books closed by working day 3, client report out by day 5. Run it as-is once, then edit it into your firm's close.

Phase 0 — Before the month even ends

3 business days before month-end

• Send the client request email: bank/credit-card statements you can't pull yourself, missing receipts over your threshold, answers to last month's open questions. Done when: one email per client, from a saved template.
• Clear the uncategorized/suspense account down to zero — don't let it pile up for close week.
• Chase unanswered requests once, 24 hours before month-end. Anything still missing gets closed with an accrual and a note, not held open.

Phase 1 — Cash first

Working day 1

• Reconcile every bank account. Done when: ledger balance = statement balance, zero unexplained items.
• Reconcile every credit card and payment processor (Stripe/Square/PayPal) — fees booked, payouts matched to deposits.
• Investigate any reconciling item over your materiality threshold; write one line each in the close notes.

Phase 2 — Revenue & payables

Working days 1–2

• AR: all invoices for the month issued; unapplied payments matched; review aging >60 days and flag for the client.
• AP: all bills entered; duplicate check (same vendor, same amount, same week); confirm nothing sits in approval limbo.
• Deferred/unearned revenue recognized per schedule (retainers, annual prepayments).

Phase 3 — Adjustments

Working day 2

• Payroll tie-out: gross pay, employer taxes, and benefits per the payroll report = ledger.
• Accruals: recurring costs with no bill yet (rent, utilities, contractors) booked and reversed next month.
• Prepaids amortized (insurance, annual software).
• Depreciation/amortization posted; new assets over the capitalization threshold added to the schedule.
• Loan payments split between principal and interest.
• Sales tax liability agrees with the filing report.

Phase 4 — Review & lock

Working day 3

• Flux review: compare P&L vs last month and vs same month last year. Explain every swing over 10% or your dollar threshold — one line each.
• Balance sheet scan: no negative balances that shouldn't be negative, no stale clearing accounts, retained earnings ties.
• Partner/senior review with the close notes.
• Lock/close the period in the accounting software.

Phase 5 — Report & send

Working days 3–5

• Generate the client report (use the template in this kit — headline numbers, plain-English summary, watch items).
• Send it with next month's request list attached — start the next close in the same email.