Month-End Closing Checklist: The 30-Minute Routine for Clean Books

Want to know the difference between business owners who stress at tax time and those who breeze through? A simple 30-minute routine at the end of each month.

I'm sharing the exact month-end closing checklist I give to my DFW small business clients. Follow this, and you'll always know where your business stands financially.

Why Month-End Closing Matters

Without regular closing:

• Bank balances don't match your books
• You miss deductible expenses
• Cash flow surprises hit hard
• Tax time becomes a nightmare

With monthly closing:

• Always know your true profit
• Catch errors early
• Make informed business decisions
• Tax prep takes hours, not days

The 30-Minute Month-End Checklist

Print this out and use it every month.

Part 1: Bank & Credit Cards (10 minutes)

Checking Account

• Download transactions through the last day of the month
• Categorize all uncategorized transactions
• Reconcile to bank statement balance
• Flag any unfamiliar charges for follow-up

Savings Account

• Download transactions
• Record any interest earned
• Reconcile to statement

Credit Cards

• Download all transactions
• Categorize expenses
• Reconcile to credit card statement
• Verify payment posted correctly

Match These: Your accounting software balance should EXACTLY match your bank/card statement ending balance. If it doesn't, find the discrepancy before moving on.

Part 2: Receivables & Payables (10 minutes)

Accounts Receivable (Money Owed TO You)

• Review all open invoices
• Send reminders for invoices 30+ days old
• Follow up personally on invoices 60+ days old
• Write off uncollectible invoices (after appropriate effort)

Accounts Payable (Money You OWE)

• Review unpaid bills
• Schedule payments due in the next 15 days
• Check for any missed vendor bills
• Verify no duplicate entries

Part 3: Review & Clean Up (10 minutes)

Categorization Check

• Review "Uncategorized" or "Ask My Accountant" — should be empty
• Check "Miscellaneous Expense" — minimize transactions here
• Review any large or unusual transactions

Quick Reports

• Run Profit & Loss for the month
• Compare to previous month — any big swings?
• Note anything unusual to discuss with your CPA

Owner's Transactions

• Ensure all owner draws/contributions are recorded
• Verify no personal expenses are mixed in

Monthly Closing Day Tips

Pick a consistent day. I recommend the 5th of each month. This gives time for all transactions to post while keeping you on schedule.

Block 30 minutes. Put it on your calendar. Treat it like a client meeting.

Don't skip months. Two months of catch-up is manageable. Six months is a nightmare.

The 5-Minute Weekly Check

Can't commit to monthly? At minimum, do this weekly:

• Categorize new bank transactions
• Review credit card charges
• Send any outstanding invoices

5 minutes weekly prevents 5 hours of monthly catch-up.

Red Flags to Watch For

During your monthly close, watch for:

Negative Bank Balance in Books Your books show negative when your bank is positive? You have uncategorized deposits or timing issues.

Accounts Receivable Growing Rising AR means clients aren't paying. Address this before it becomes a cash flow crisis.

Suspense or "Ask Accountant" Balance These accounts should always be zero at month-end.

Big Swings in Expense Categories Marketing went from $500 to $5,000? Make sure it's a real business expense, not a miscategorization.

Quarterly Add-Ons

Every three months, add these steps:

Q1, Q2, Q3, Q4

• Review estimated tax payments (did you pay enough?)
• Verify payroll tax deposits are current
• Check sales tax filings (if applicable)
• Review contractor payments (approaching 1099 threshold?)

Year-End Special

• Inventory of equipment and assets
• Review all 1099 contractors — addresses correct?
• Verify W-2 employee information
• Make year-end retirement contributions
• Consider timing of income/expenses for tax planning

Software Features That Help

QuickBooks Online

• Bank Rules — auto-categorize recurring transactions
• Recurring Transactions — automate monthly entries
• Reconcile — use the built-in reconciliation tool

Xero

• Bank Rules — same concept
• Find & Match — smart transaction matching
• Reconciliation — reports show unreconciled items

When to Call Your CPA

Don't wait until tax time. Call when:

• You can't reconcile after 15 minutes of trying
• You notice unusual transactions you can't explain
• You're considering a major purchase or investment
• Revenue or expenses are significantly different than expected
• You have questions about categorization

A 15-minute call now prevents a $500 cleanup later.

The Bottom Line

Month-end closing isn't exciting, but it's the difference between running your business and your business running you.

30 minutes, once a month. That's all it takes to:

• Know your exact profit
• Catch problems early
• Make tax time easy
• Sleep better at night

Start this month. Your future self (and your CPA) will thank you.

Need help getting your monthly routine established? I help DFW business owners build systems that work.

Ready to get your books in order? Start here →

— Krystal Le, CPA

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LeCPA provides bookkeeping and accounting services for small businesses across Plano, Richardson, Carrollton, Frisco, and Dallas.