--- title: "Month-End Close Checklist for Small Business Owners" description: "A month-end close checklist for small business: reconcile accounts, review transactions, check invoices, pay contractors, run reports and hold a review call." url: https://peachtreeva.multisites.ai/guides/month-end-close-checklist publisher: Peachtree VA book: https://peachtreeva.multisites.ai/contact --- # Month-End Close Checklist for Small Business Peachtree VAUpdated October 29, 20268 min read The short answer A month-end close checklist is the set of steps you run after each month ends to make the books accurate: record all activity, categorize it, reconcile accounts, check invoices and bills, review reports and hold a review. Peachtree aims to close the prior month and deliver statements by the fifth business day. ## Same steps every month A fixed order makes the close fast and makes errors easy to spot. ## Reconcile before you report Reports built on unreconciled accounts can look fine and still be wrong. ## Set a close day Peachtree aims to deliver the prior month's statements by the fifth business day of the new month. ## Finish with a review A short monthly call turns clean books into decisions. ## What is a month-end close checklist? A month-end close checklist is the list of steps you run after a month ends to make the books accurate and final. You record all activity, categorize it, reconcile accounts, check invoices and bills, run reports and review them. The checklist makes the close the same every month. A repeatable close gives you reports you can trust. It also keeps tax time calmer, because you fix small problems when they are new. For a plain definition, see the glossary entry on [month-end close](https://peachtreeva.multisites.ai/glossary/month-end-close). This guide builds on our earlier post, [Month-End Bookkeeping Simplified in 7 Steps](https://peachtreeva.multisites.ai/month-end-bookkeeping-simplified-in-7-steps). Here you get the full checklist as a table, a timeline, and tips for each step. ## What is the full month-end close checklist? The checklist has ten tasks, run in a set order. Early tasks capture activity. Middle tasks check it. Late tasks report it. Work top to bottom, and do not run reports until reconciliation is done. Tick each box before you move on. # Task What to check Done 1 Sync and record all activity Banks, cards and payment processors are all current through the last day \[ \] 2 Enter missing items Receipts, cash items, checks and bills received \[ \] 3 Categorize transactions No uncategorized items; vendor names are consistent \[ \] 4 Reconcile bank and card accounts Book balance equals statement balance for each account \[ \] 5 Review invoices to customers All sales are invoiced; old invoices are followed up \[ \] 6 Review bills and contractor payments All bills are entered; contractor payments are coded; 1099 data is tracked \[ \] 7 Review loans, payroll and other liabilities Balances match lender and payroll reports \[ \] 8 Run financial reports Profit and loss, balance sheet, open invoices, unpaid bills \[ \] 9 Review and explain changes Compare to last month and last year; note odd items \[ \] 10 Hold the review call and lock the month Decisions noted; closed period locked \[ \] Copy the table into a spreadsheet and tick each box every month. If a task does not apply to you, delete it. Add tasks that are specific to your business, such as inventory counts. ## How do I run each step? Each step has a purpose and a common trap. Work through them in order. The notes below explain what to do and what to avoid, so the close finishes in one pass and does not need a second round. 1. **Sync and record all activity.** Make sure every bank, card and payment account feeds your software through the last day of the month. Missing feeds are the most common cause of surprise numbers. 2. **Enter missing items.** Add anything that did not sync, such as cash spending, paper checks and reimbursements. Chase the receipts for large items. 3. **Categorize transactions.** Assign every item to the right account in your [chart of accounts](https://peachtreeva.multisites.ai/guides/chart-of-accounts). Review any automatic rules for errors. Clear the “uncategorized” account to zero. 4. **Reconcile accounts.** Compare your books to each statement, line by line. See [bank reconciliation](https://peachtreeva.multisites.ai/glossary/bank-reconciliation). Investigate every difference, even small ones. 5. **Review customer invoices.** Confirm that every sale has an invoice. Check [accounts receivable](https://peachtreeva.multisites.ai/glossary/accounts-receivable) for overdue items and plan follow-up. 6. **Review bills and contractor payments.** Enter every bill received. Check [accounts payable](https://peachtreeva.multisites.ai/glossary/accounts-payable) for what you owe. Code contractor payments correctly so year-end 1099 work is easy. 7. **Review liabilities.** Match loan balances to lender statements and payroll totals to payroll reports. Check sales tax if it applies to you. 8. **Run the reports.** Produce the [profit and loss statement](https://peachtreeva.multisites.ai/glossary/profit-and-loss-statement) and the [balance sheet](https://peachtreeva.multisites.ai/glossary/balance-sheet). Add reports for open invoices and unpaid bills. 9. **Review and explain.** Look for large changes. Ask why for each one. A jump in one expense may be a real event or a coding error. 10. **Hold the review and lock.** Meet to discuss results and next steps. Then lock the closed month so later edits are deliberate. ### Why does reconciliation come before reports? Reports only add up what is in the books. If an account is not reconciled, a report can look neat and still be wrong. A missed deposit or a duplicate charge flows straight into profit. Reconciling first means the report reflects the real bank balance. Our post on [bookkeeping blunders](https://peachtreeva.multisites.ai/bookkeeping-blunders) covers other mistakes that slip through when this step is skipped. For daily habits that make the close shorter, see these [bookkeeping tips](https://peachtreeva.multisites.ai/6-bookkeeping-tips). ## What does the timeline look like? A good close spreads the work across the first week of the month. You do not need to finish on day one. A target date keeps the process moving. Peachtree aims to close out the prior month’s books and provide financial statements by the fifth business day of the new month. When Work Who During the month Categorize transactions, send invoices, enter bills, process contractor payments Bookkeeper, with your receipts Last day of month Make sure all feeds are current Bookkeeper Business days 1 to 2 Enter missing items, finish categorizing Bookkeeper Business days 2 to 4 Reconcile accounts, review invoices, bills and liabilities Bookkeeper By business day 5 Run and review financial statements Bookkeeper Early in the month Review call: prior month, year-to-date, budgets and forecasts Bookkeeper and owner The split of days is a sample plan. Every client’s account is different. During onboarding and kickoff, Peachtree sets a monthly cadence that fits each client’s needs. The fifth-business-day goal is the target in our standard process. ## What should I look for in the reports? Look for four things: income that matches your invoices, expenses that match your records, a balance sheet that ties to the bank, and changes you can explain. Reports are a tool for decisions. A number you cannot explain is a task, not a result. Report Question it answers Warning sign Profit and loss Did we make money this month? A big swing with no matching event Balance sheet What do we own and owe? Cash does not match the bank Open invoices Who owes us? Old invoices that nobody chases Unpaid bills What do we owe? Bills past due or missing Budget comparison Are we on plan? A category far over or under with no reason Compare each month to the one before it and to the same month last year. Seasonal swings are normal. A change with no reason is not. ### What if the books are behind? Do not try to run a perfect close on months of backlog. Start with a catch-up project that brings the oldest months current, one month at a time. Then move to a monthly close. See [catch-up bookkeeping](https://peachtreeva.multisites.ai/glossary/catch-up-bookkeeping) for how that work is usually scoped. ## How should the monthly review call go? Keep the review call short and focused. Cover last month’s results, year-to-date numbers, and any budget or forecast changes. Then decide what to do. A review without decisions is a report you read and forget. At the start of each month, your Peachtree bookkeeper meets with you to review the prior month’s performance, year-to-date results, and any budgets or forecasts that may need updating. Use a simple agenda: 1. Results: income, expenses and profit for the month 2. Year-to-date: how the year is tracking 3. Cash: balances, upcoming bills, overdue invoices 4. Questions: odd items and open coding questions 5. Decisions: price changes, spending cuts, hires, tax planning questions for your CPA Tax questions belong with your CPA. Your bookkeeper keeps the data clean and ready. If you use cash or accrual reporting, see our guide on [cash vs accrual accounting](https://peachtreeva.multisites.ai/guides/accrual-vs-cash-basis). ## Can a bookkeeper run the close for me? Yes. A bookkeeper can run the whole checklist so you only read the results. Peachtree bookkeepers categorize transactions, send invoices as needed, process contractor payments, issue 1099s when applicable, and reconcile accounts throughout the month. They work alongside your CPA. The service covers transaction management, monthly financial reports, monthly reviews, account reconciliation, custom reports, CPA coordination, budget management and invoice management. Peachtree bookkeepers mainly work with [QuickBooks Online](https://peachtreeva.multisites.ai/glossary/quickbooks-online). Read more about the role in the glossary entry on [outsourced bookkeeping](https://peachtreeva.multisites.ai/glossary/outsourced-bookkeeping). Bookkeeping packages start as little as $240 per month. Packages are based on your transaction volume and complexity. A free 30-minute consultation helps us scope your close. ## What are the most common month-end close mistakes? The most common mistakes are closing before reconciling, ignoring old open items, and letting the process drift. Each one is easy to fix with the checklist. The table shows what to watch for and how to respond, so the same problem does not repeat next month. Mistake Effect Fix Running reports before reconciling Reports look right and are wrong Reconcile first, every month Leaving an “uncategorized” balance Profit and loss is unreliable Clear it to zero before reporting Forgetting to invoice Income is understated Check delivered work against invoices Skipping contractor tracking 1099 work piles up at year end Code contractor payments all year Editing closed months Past reports change without notice Lock the period and log late fixes No review call Clean books drive no decisions Hold a short monthly review A good close also leaves a trail. Keep a copy of each month’s reconciled reports and a note on any open question. If your CPA asks about March in the following February, you can answer in minutes. Finally, set one owner for the close. When two people each assume the other did a step, items fall through. Name the owner, set the date, and use the same checklist each month. Over a few months the close gets faster, and the numbers get easier to trust. If you use a bookkeeper, ask them to send the finished checklist along with the reports, so you can see each box ticked. ## Next step If you want the close handled for you, see our [bookkeeping service](https://peachtreeva.multisites.ai/bookkeeping). You can also [book a free strategy call](https://peachtreeva.multisites.ai/contact) to set your monthly cadence. ## Frequently asked questions ### What is a month-end close? A month-end close is the routine of finishing the books for a month. You record all activity, categorize it, reconcile accounts, check invoices and bills, run reports and review them. When it is done, the month is locked and the reports can be trusted. ### How long should a month-end close take? It depends on transaction volume and how tidy the books are during the month. Peachtree aims to close out the prior month's books and provide financial statements by the fifth business day of the new month. Daily upkeep makes a short close possible. ### What reports should I review at month end? Review the profit and loss statement, the balance sheet, and lists of open invoices and unpaid bills. Many owners also compare the month to the prior month and to the same month last year. Add a budget comparison if you use a budget. ### What is the most important step in the close? Reconciliation. Matching your books to bank and card statements catches missing items, duplicates and wrong amounts before they reach a report. Skipping it is the most common reason close-day numbers turn out wrong. ### Should I lock the books after the close? Many bookkeepers do. A lock stops edits to closed months, so reports stay stable. If a late fix is needed, the bookkeeper makes it on purpose and tells you. Ask your bookkeeper or CPA how to handle closed periods. ### Can Peachtree VA run the month-end close for me? Yes. Peachtree bookkeepers categorize transactions, send invoices, process contractor payments, issue 1099s when applicable and reconcile accounts each month. They also meet with you at the start of each month to review results. Book a free 30-minute consultation. ## Terms in this article - [Profit and loss statement](https://peachtreeva.multisites.ai/glossary/profit-and-loss-statement) - [Outsourced bookkeeping](https://peachtreeva.multisites.ai/glossary/outsourced-bookkeeping) - [Catch-up bookkeeping](https://peachtreeva.multisites.ai/glossary/catch-up-bookkeeping) - [Accounts receivable](https://peachtreeva.multisites.ai/glossary/accounts-receivable) - [Bank reconciliation](https://peachtreeva.multisites.ai/glossary/bank-reconciliation) - [Chart of accounts](https://peachtreeva.multisites.ai/glossary/chart-of-accounts) - [QuickBooks Online](https://peachtreeva.multisites.ai/glossary/quickbooks-online) - [Accounts payable](https://peachtreeva.multisites.ai/glossary/accounts-payable) ## Keep reading - [### Cash vs Accrual Accounting: Which Fits Your Small Business? Cash basis records income when money arrives and expenses when you pay them. Accrual basis records income when you earn it and expenses when you incur them, even if cash moves later. Accrual shows a truer monthly picture. Cash is simpler. Your CPA should confirm which method you may use. Read](https://peachtreeva.multisites.ai/guides/accrual-vs-cash-basis) - [### Chart of Accounts: What It Is and How to Set One Up A chart of accounts is the master list of categories your bookkeeping uses to record money. Every transaction lands in one account. The accounts fall into five types: assets, liabilities, equity, income and expenses. A clean, short chart makes your reports clear and your tax prep easier. Read](https://peachtreeva.multisites.ai/guides/chart-of-accounts) - [### Why Your Books Should Close by the Fifth Business Day A fifth-business-day close means the prior month's books are reconciled and financial statements reach you within about a week of the month ending. Peachtree VA aims for that target. It matters because you decide on fresh numbers, not stale ones, and your CPA gets clean records. Read](https://peachtreeva.multisites.ai/blog/bookkeeper-month-end-fifth-business-day) ## Get your week back. Book a free, no-obligation strategy call. We will map out what to hand off first, and you leave with a plan whether or not you become a client. [Book a free strategy call](https://peachtreeva.multisites.ai/contact)[or email info@peachtreeva.com](mailto:info@peachtreeva.com) ![Sarah Harlan, Client Experience & Operations Manager](https://peachtreeva.multisites.ai/_astro/sarah-harlan.DtVquYwL_2b0Qn7.webp) ![Darleen Priday, Vice President of Business Development](https://peachtreeva.multisites.ai/_astro/darleen-priday.jiyh6aPr_1PLR4H.webp) ![November Lee, Marketing Manager](https://peachtreeva.multisites.ai/_astro/november-lee.Cro_USs7_Z1Yhdwg.webp)