Reconciliation & Closing
Monthly Bookkeeping Close: 7-Step Checklist
Short answer
Closing the books monthly takes 60–90 minutes once it's a habit: (1) import all transactions, (2) categorize, (3) reconcile every bank and card account, (4) review AR aging, (5) review AP and unpaid bills, (6) accrue sales tax, (7) lock the period and back up.
The owners with the cleanest books aren't smarter — they have a checklist and run it on the same day every month.
The 7-step monthly close
- Import or sync all transactions from every business account and credit card through the last day of the month.
- Categorize every transaction. Use 'Ask My Accountant' for unknowns — don't let them block you.
- Reconcile each account against its statement. Ending balance in software must match statement to the penny.
- Run an AR aging report. Send reminders on anything 30+ days past due before you move on.
- Review AP / unpaid bills. Schedule payments and confirm nothing is duplicated.
- Calculate sales tax collected for the month. Move it from operating cash to a 'Sales Tax Payable' sub-account so you don't spend it.
- Lock the period (or mark it closed) and export a backup of the P&L, balance sheet, and reconciliation reports.
When to do it
Schedule it for the 5th of the next month — after statements arrive but before tax deadlines.
Block 90 minutes on your calendar as a recurring event. The discipline matters more than the speed.
Frequently asked questions
What if I'm 6 months behind?
Pick the most recent month and close it cleanly. Then work backward, one month at a time, in order. Don't try to catch up everything in one sitting.
Bookkeeping, done for you.
Glo Invoice keeps your P&L, AR, and expenses in sync automatically — no spreadsheets, no surprises.
Sources & further reading
Primary sources we consulted when writing and reviewing this guide.