Month-end close explained
Closing the month means getting the books complete and correct for that month, then locking it so the numbers don’t change after you’ve used them. A closed month is one you can report on, file from and compare against.
A typical close records every bank and card transaction, reconciles each account against its statement, reviews what customers owe and what you owe, posts adjusting entries such as accruals and depreciation, and reviews the income statement and balance sheet for anything that looks wrong. Only then is the period locked.
Most small businesses can close within the first one to two weeks of the next month. The year-end close is the same process for the last month, plus the year-end work your tax preparer needs.
Example: closing March by April 10
A bookkeeper’s close for one client:
| Date | Step |
|---|---|
| Apr 1–3 | Record March’s remaining bank and card transactions |
| Apr 4 | Reconcile checking and the credit card to their March statements |
| Apr 6 | Review open invoices and bills; post the $900 utility accrual and $166.67 depreciation |
| Apr 8 | Compare March’s income statement with February’s and explain the large changes |
| Apr 10 | Close March so it’s locked |
Where you’ll see it in fiscal50
fiscal50 closes one completed month at a time, in order, or a whole fiscal year at once. Before a period can close, a Pre-Closing Verification checklist confirms every bank and credit card transaction is recorded and every account is reconciled, and flags anything else pending, such as invoices, depreciation or transactions waiting for approval.
Once closed, nothing dated in the period can be created, edited or deleted, and its reports keep the same figures. For firms, the Bookkeeper Workspace shows month-end status for every client on one board.