Month-End Close Checklist for Small Businesses
"Closing the month" just means making sure last month's books are complete and correct, then locking them so they don't change. Here's a simple version for a small business.
The 8-step checklist
- Collect every statement: bank, credit card, loan, and Stripe, PayPal, Square or Shopify payouts.
- Catch missing and duplicate transactions from the bank feed.
- Reconcile each bank and card account to the statement balance.
- Reconcile payment processors: gross sales, fees, refunds and payouts in transit.
- Review unpaid invoices (money owed to you) and unpaid bills (money you owe).
- Clear "uncategorized" or list what's left and why.
- Review the P&L and balance sheet against last month for anything odd.
- Lock the period and save the reports.
Don't stop at the profit and loss
A P&L can look fine while a bank balance is off. The balance sheet and reconciliations catch what the P&L hides.
Keep an open-items list
If a question can't be answered yet, write it down with who owns it. Don't mark the month done while questions are open.
Want someone to do it each month?
Linked-do-Books does monthly bookkeeping that's technology-assisted with human review, 100% remote and nationwide, with a plain-language monthly note. Lite is $199/month (up to 50 transactions and 1 bank or card account). Behind? Books Clean-Up is $150 per month behind ($600 minimum, $1,800 cap). Bookkeeping only. Tax preparation and tax advice stay with a licensed tax professional.
Related reading
- How to Reconcile a Bank Account
- Chart of Accounts for Small Business: A Simple Starter List
- How to Reconcile Stripe, PayPal & Shopify Payments Payouts
- How Much Does Monthly Bookkeeping Cost for a Small Business?
- Catch-Up Bookkeeping Cost: What Affects the Price?
Call Linked-do-Books: (406) 500-5242 · Linkedd LLC, 226 S Cruse Ave, Helena, MT 59601
Frequently asked questions
What is a month-end close?
It's checking that last month's books are complete and correct, reconciling accounts to statements, and then locking the month so it doesn't change.
How long does a month-end close take for a small business?
For a simple small business with a few accounts, it's often a few hours once statements are in. It takes longer when transactions are months behind.
What accounts should be reconciled at month-end?
Every bank, credit card and loan account, plus payment processors like Stripe, PayPal, Square or Shopify Payments.
Why lock the period after closing?
Locking stops anyone from accidentally changing a month that's already been reviewed.
Can Linked-do-Books close my books each month?
Yes. Monthly bookkeeping plans start at $199 a month, technology-assisted with human review, 100% remote and nationwide.