A monthly close is what turns bookkeeping into a finance function. Same steps, same order, every month — done by a target date you can rely on. Here's the checklist we run for clients at Lemoti.
Before the close (ongoing during the month)
- Bank feeds reviewed and categorized weekly — never let transactions pile up.
- Receipts and bills captured as they arrive.
- Customer invoices sent on schedule.
Close week — in this order
- Reconcile every account: bank, credit cards, loans, and payment processors (Stripe/PayPal/Square payouts matched to fees and deposits).
- Post payroll: wages, employer taxes, and benefits from your payroll provider's reports — split correctly, not lumped as one expense.
- Review AR: aging report — chase what's late, flag what's doubtful.
- Review AP: enter unpaid bills so expenses land in the right month.
- Update balance-sheet schedules: loan balances to statements, prepaid expenses amortized, fixed assets and depreciation current, payroll and sales tax liabilities verified.
- Scan the P&L: compare to last month and budget; investigate anything that moved more than ~10% without a known reason. Empty the uncategorized accounts.
- Lock the period with a close date so nothing changes after reports go out.
Deliverables (what the owner should receive)
- P&L (month + year-to-date, vs. budget if you have one)
- Balance sheet
- Cash summary and AR/AP agings
- Three to five bullet points in plain English: what changed, why, and anything that needs a decision.
The standard to hold
Books closed and reports delivered by the 10th business day — ideally the 5th. Slower than that, and the information arrives too late to act on. If your current close doesn't hit that bar (or doesn't exist), that's exactly what our Foundation engagement fixes.