--- title: "A monthly bookkeeping close checklist for small businesses" description: "A step-by-step monthly close for a small business: reconcile accounts, review uncategorized items, check invoices and bills, lock the period and read…" url: "https://mcc-solutionsnj.com/bookkeeping/guides/monthly-bookkeeping-close-checklist" --- Bookkeeping guide · Updated October 12, 2026 # A monthly bookkeeping close checklist for small businesses A monthly close is a routine that turns a pile of transactions into numbers you can trust. This is a short version that works for most small businesses. By [Matthew Coleman](/about), MCC Solutions **Quick answer.** A monthly close starts by collecting statements for every bank account, credit card, loan and payment processor and comparing each one with what the software shows as of the month-end date. Want this handled for you? Monthly bookkeeping, cleanup and year-end close for small businesses. Start with a free health check of your books. [Free health check](/bookkeeping/health-check)[Get a quote](/bookkeeping/#interest) **Related:** [Trial balance explained](/bookkeeping/guides/trial-balance-explained) · [Owner contribution or loan](/bookkeeping/guides/owner-equity-and-capital-contributions) · [Closing entries and retained earnings](/bookkeeping/guides/closing-entries-and-retained-earnings) **Free tools:** [Current ratio calculator](/bookkeeping/current-ratio-calculator) · [ROI and payback calculator](/bookkeeping/roi-and-payback-calculator) Prefer a file to work in? The [Month-End Close Workbook](/toolkits/month-end-close-workbook) runs the whole close in Excel and tells you when a reconciliation does not tie. [![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77) Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) ## 1. Get the statements Collect statements for every bank account, credit card, loan and payment processor. Compare each one with what the software shows as of the month-end date. ## 2. Reconcile every account Match each bank and card account to its statement until the difference is zero. Anything that will not match gets investigated, not plugged. See our reconciliation guide. ## 3. Clear the uncategorized Empty the ask-my-accountant or uncategorized account. Each item either gets a category or a question for the owner. ## Want us to handle it? We close the year with you: accounts reconciled, 1099s sorted, and books your tax preparer can use. **Price:** Free review of your books first, then a written quote before any work starts. [Get a free review and quote](/bookkeeping/#interest) [1099 and year-end cleanup](/bookkeeping/1099-and-year-end-books-cleanup) ## 4. Check invoices and bills Review what customers owe you and what you owe vendors. Look for old unpaid invoices, duplicated bills and payments applied to the wrong customer. ## 5. Payroll and sales tax Confirm payroll reports match what was withheld and paid, and that any sales tax collected is recorded as a liability until it is paid. ## 6. Review the reports Read the profit and loss and the balance sheet. Compare with last month. Big changes need an explanation, and odd balances such as negative inventory or a cash account that does not look like the bank are worth a closer look. ## 7. Lock the period Most accounting software can close the books through a date so old months do not change by accident. Ask your accountant before you set the date, and keep a note of who can change closed periods. ## Common questions **How long should a monthly close take?** For a small business with clean records it can take a few hours. Late statements and missing receipts are what stretch it out. **Do I need to close every month?** It is much easier than catching up at year end. Monthly keeps problems small and taxes simpler. This guide is general information, not tax, legal or accounting advice. Rules, fees and due dates change; check with the IRS, the NJ Division of Taxation or a licensed professional for your situation. Let us handle it [### Monthly bookkeeping Categorizing, reconciling and monthly reports, with cleanup, payroll and NJ filings available. Bookkeeping →](/bookkeeping/) [### QuickBooks Online Monthly bookkeeping, cleanup and reconciliation in QuickBooks Online for New Jersey small businesses. Your account stays in your name. QuickBooks →](/bookkeeping/software/quickbooks-online) More guides - [Cash vs. accrual accounting: which fits your business?](/bookkeeping/guides/cash-vs-accrual-accounting) - [How to read a profit and loss statement](/bookkeeping/guides/how-to-read-a-profit-and-loss-statement) - [How much does small business bookkeeping cost?](/bookkeeping/guides/how-much-does-bookkeeping-cost) - [Double-Entry Bookkeeping Explained Simply](/bookkeeping/guides/double-entry-bookkeeping-explained) Free tool - [Bookkeeping health check](/bookkeeping/health-check) [All guides](/bookkeeping/guides) Reach small business owners, freelancers and bookkeepers who read this guide: [advertise here](/advertise#bookkeeping). ## Rather have us keep the books? Ask for a quote. 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