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Month-End Close
Checklist for QBO

This is the same process I use for clients. It's opinionated, it's specific, and it works. Use it as-is or adapt it to your business.

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Most "month-end close" checklists online are either too generic to be useful or written for enterprise accounting teams with 15 people. This one is for small business owners using QuickBooks Online — whether you're handling books yourself or want to understand what your bookkeeper should be doing every month.

1
Collect & confirm

Before you touch anything in QBO, make sure you have everything you need. Closing the books with missing information just means reopening them later.

Confirm all bank and credit card transactions have been downloaded through month-end
Check each connected account in Banking. If feeds are delayed, manually import the CSV from your bank.
Collect outstanding receipts, invoices, and expense documentation
Chase down anything missing before you start categorizing. You don't want to guess now and fix later.
Verify payroll has been processed and recorded for the month
If using Gusto or another external provider, confirm the entries synced to QBO correctly.
2
Categorize & match

This is where most of the actual work happens. Every transaction needs to land in the right place.

Review and categorize all transactions in the Bank Feed
Don't bulk-accept auto-categorizations without reviewing them. QBO's suggestions are often wrong, especially for new vendors.
Match deposits to invoices (if using A/R)
Every payment received should be matched to the corresponding invoice, not just categorized as income.
Record any bills or expenses not yet in the system
Vendor invoices received but not yet paid still need to be entered if you want accurate accrual-basis reporting.
Clear the "For Review" queue to zero
Nothing should be sitting in limbo at month-end. If you can't categorize it, flag it and move on — but don't leave it unresolved.
3
Reconcile

This is non-negotiable. If you skip reconciliation, nothing else on this list matters because you can't trust your numbers.

Reconcile all bank accounts to their month-end statements
In QBO: Gear icon → Reconcile. Your ending balance must match your bank statement exactly. A $0.00 difference. No exceptions.
Reconcile all credit card accounts to their statements
Same process. Same standard. Every card, every month.
Investigate and resolve any discrepancies before finalizing
If your reconciliation doesn't balance, stop and find out why. Common causes: duplicates, missing transactions, or transactions dated in the wrong month.
4
Review & adjust

Now that everything is categorized and reconciled, take a step back and look at the bigger picture. This is where you catch the things that automated processes miss.

Review A/R aging — follow up on anything overdue
Run the A/R Aging Summary report. Anything over 30 days needs attention. Anything over 60 needs a phone call.
Review A/P aging — confirm upcoming obligations
Know what's due in the next 30 days so you're not surprised by cash flow gaps.
Record recurring journal entries (depreciation, prepaid amortization, etc.)
If you have fixed assets or prepaid expenses, the monthly entries need to be posted. Set these up as recurring in QBO if you haven't already.
Scan the P&L for anything that looks off
Compare to last month. Are any categories significantly higher or lower? Unusual spikes usually mean a categorization error or a missed transaction — not actual variance.
5
Close & report

Lock the month, generate your reports, and move on. A clean close means you never have to look at this month again.

Set the closing date in QBO to lock the period
Gear → Account and Settings → Advanced → Closing date. This prevents accidental changes to closed months. Use a password.
Generate and save month-end reports: P&L, Balance Sheet, Cash Flow Statement
Export as PDF and file them. Your future self (and your CPA) will thank you.
Note anything that needs follow-up next month
Missing documentation, pending vendor clarifications, unusual transactions to watch — write them down now while they're fresh.

Rather have someone handle this for you?

This checklist represents about 3–5 hours of focused work each month, depending on your transaction volume. If that time would be better spent running your business, let's talk.

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