Month-end close checklist

A short close for a small service or product business. Check the boxes as you finish. They stay in this browser only.

Important: Educational estimates only. Not tax, legal, or accounting advice. AI Accounting Desk is not a CPA firm and does not provide professional services. Verify figures with a licensed professional and official IRS sources (irs.gov) before making decisions.

Before you start

Pick a statement date and stop adding that month’s transactions until the list below is done. A close that keeps accepting new coding is a moving target. The steps follow the bookkeeping sequence: source documents, reconciliation, then the statements.

Cash and cards

Reconcile each checking and savings account to the statement ending balance. Follow the bank reconciliation steps. The difference is zero, or you can name the item that explains it.
Reconcile each business credit card to its statement. Uncoded charges are not “close enough.”
Clear undeposited funds, payment-processor holding accounts, and any “ask my accountant” balance down to what is actually in transit.

Who owes whom

Review accounts receivable. Every open invoice has a customer, a date, and a total that matches the invoice. Write off or follow up; do not leave a ghost balance.
Review accounts payable and card balances you have not paid. Bills belong in the month you incurred them if you are on accrual.
Scan for personal spending. Move it to owner’s draw or wages, matching the entity. Do not leave it in an expense account.

Liabilities that are not yours to keep

Match payroll liabilities to the payroll reports: wages payable, withheld taxes, and the employer share. The payroll tax estimate is a sketch, not the form you file.
Tie sales tax payable to taxable sales for the period. The liability is not revenue. See sales tax in the books.

Read the month

Read the profit and loss from revenue down to net profit. Investigate any account that is new, negative, or far from last month.
If you carry inventory, confirm cost of goods sold used the beginning, purchases, and ending pattern, not a plug.
Confirm the balance sheet balances and that cash on it matches the reconciliation.
Note the close date in your working papers. Later edits to a closed month should be rare and described.

What this close deliberately skips

Inventory counts, contractor information returns, and a full depreciation review belong in the year-end checklist. Doing a light version every month is useful. Pretending the monthly list is a tax return is not.