Monthly Close Checklist (Free Template for Small Business Bookkeeping)
Close Your Books Like a Pro-Every Month, On Time
Tired of late financials or missing numbers? You’re not alone.
Whether you’re doing your books yourself or managing a team, the monthly close process decides how accurate your reports-and your decisions-are.
This free checklist (downloadable template below) walks you through each step of a complete month-end close, built from the same system we use at RemoteBooksOnline to close thousands of client accounts by Day 7-10.
Why a Monthly Close Checklist Matters
A month-end close is more than reconciling accounts-it’s about catching errors early, ensuring cash and profit numbers actually align, and keeping your CPA and tax filings clean. Without a checklist:
- Bank balances drift from accounting software
- Unmatched deposits or transfers skew reports
- Expenses hit the wrong month, misrepresenting profit
- You lose confidence in your own numbers
A clear, repeatable checklist keeps books audit-ready and decisions trustworthy.
Already using flat-rate bookkeeping?
Combine this checklist with Monthly Bookkeeping Services→ to automate most steps.
Need help fixing reconciliation errors and cleaning your books?
The Complete Month-End Close Checklist
Step 1: Reconcile All Bank and Credit Card Accounts
- Confirm statement end dates
- Match all cleared transactions
- Investigate unreconciled differences or duplicate entries
- Lock reconciled periods to prevent re-posting
Goal: Zero unreconciled variance.
Step 2: Review Accounts Receivable (AR)
- Match invoices vs payments received
- Age outstanding balances (30 / 60 / 90 days)
- Write off or flag doubtful accounts
- Send reminder emails before month-end
Goal: Accurate aging report for cash forecasting.
Step 3: Review Accounts Payable (AP)
- Verify vendor bills and payment cutoffs
- Post any missing bills or credits
- Confirm expense allocations (no personal expenses)
- Accrue unpaid but incurred expenses
Goal: No surprise bills next month.
Step 4: Post Payroll and Related Liabilities
- Record gross payroll, withholdings, and employer taxes
- Reconcile payroll journal to bank and provider reports
- Accrue unpaid payroll if applicable
Goal: Payroll expense matches provider records exactly.
Step 5: Review Inventory and COGS (if applicable)
- Update counts or import from POS/ERP
- Record adjustments and transfers
- Verify landed costs and cost allocations
- Post Cost of Goods Sold journal entries
Goal: True gross margin for the period.
Step 6: Record Sales Tax & Other Liabilities
- Reconcile collected vs remitted tax
- Post entries for any unpaid liabilities
- Verify loan, lease, or credit line balances
Goal: No unrecorded compliance items.
Step 7: Review Fixed Assets and Depreciation
- Add new assets purchased during the month
- Record monthly depreciation
- Retire or sell disposed assets
Goal: Asset schedule matches general ledger.
Step 8: Generate Financial Reports
- Profit & Loss, Balance Sheet, Cash Flow
- Review variances month-over-month and vs budget
- Add management KPIs (gross margin, net margin, cash runway, etc.)
Goal: Clean, complete, consistent reports.
Step 9: CPA/Reviewer Sign-Off
- Reviewer checks random samples
- Confirm trial balance = 0 variance
- Lock prior period; create PDF pack for archival
Goal: CPA-ready books and a closed period.
Outsourced Bookkeeping vs In-House
Download Your Free Checklist Template
Download Monthly Close Checklist (Excel / PDF)
Includes:
- Editable Excel version with formulas
- Printable PDF version for manual teams
- Built-in task tracker + completion log
Bonus: Monthly Close Metrics to Track
| Metric | Why It Matters | Ideal Target |
|---|---|---|
| Days to close | Measures process speed | ≤ 10 days |
| Reconciliation variance | Accuracy health | 0 |
| AR days outstanding | Cash efficiency | < 35 days |
| AP days | Vendor relationship | < 40 days |
| Expense accuracy | Data quality | > 99 % |
Automate 70 % of This Process
Automation isn’t about replacing accountants-it’s about freeing them to analyze, not chase receipts.
We use bank rules, AI categorization, and reviewer automation to cut close times by 40 % on average.
See how in AI-Powered Monthly Bookkeeping →
Stop closing late. Start closing smart.
Get the same checklist we use for 1,000+ SMB clients-free today.
Download Template See Monthly Bookkeeping Plans
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