QuickBooks Close Checklist: A 2-Hour Month-End
Closing your books does not have to take days. With the right QuickBooks workflow, you can complete a full month-end close in about two hours. The key is preparation, consistency, and automation. This checklist outlines each step professional bookkeepers follow to reconcile accounts, review reports, and finalize the month without stress or errors.
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Step 1: Reconcile All Accounts
Start with your bank and credit card statements.
- Match transactions line by line.
- Review any uncleared checks or deposits.
- Confirm ending balances match your bank statements.
Reconcile loan and merchant accounts as well for a complete picture.
Step 2: Review Transactions for Accuracy
- Check for duplicate entries or uncategorized expenses.
- Confirm income and expense categories align with your chart of accounts.
- Verify that all bills and invoices are posted.
Clean transaction data ensures reliable reports later.
Step 3: Review Accounts Receivable (AR) and Accounts Payable (AP)
Run aging reports.
- Follow up on overdue invoices.
- Review unpaid vendor bills and upcoming payments.
Timely AR/AP management keeps cash flow consistent and prevents surprises.
Step 4: Review Payroll and Adjust Journal Entries
If payroll is run outside QuickBooks, confirm journal entries post correctly each cycle. Adjust for accrued wages, benefits, or taxes if needed.
Step 5: Run and Review Financial Reports
Generate:
- Profit and Loss
- Balance Sheet
- Statement of Cash Flows
Compare trends against prior months to identify anomalies or missing data.
Step 6: Make Final Adjustments
Post adjustments for depreciation, prepaids, or accrued expenses as advised by your CPA or controller. Ensure these entries are documented for audit clarity.
Step 7: Lock the Period
After final review, close and lock the month in QuickBooks. This prevents accidental changes and preserves data integrity for tax filings.
Step 8: Backup and Document
Create a backup copy and save reports in a secure folder labeled with the month and year. Include notes for any exceptions or pending items to carry forward.
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Discover why consistent monthly bookkeeping improves control and accuracy.
Time-Saving Tips
- Automate bank feeds and recurring transactions.
- Use rules for categorization to reduce manual work.
- Set recurring reminders for reviews and approvals.
Following this routine cuts month-end time from days to hours.
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FAQs
How long should a QuickBooks close take?
With preparation, most small businesses can close books within 2–3 hours.
Should I lock my books after closing?
Yes. Locking prevents accidental edits and ensures reports stay consistent.
How often should I close my books?
Every month, followed by a quarterly CPA review.
What if I find errors after closing?
Reopen the period, fix the error, and close again, documenting the adjustment.
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