Month-End Close Checklist for Small Businesses

A month-end close is the routine that turns a month of transactions into numbers you can rely on. Done consistently, it means you know where the business stands within days of the month finishing, not months later at the year end. This checklist covers the steps we work through with growing businesses.

Management decisions, cash planning and investor conversations all depend on current figures. If the books are only tidied once a year, errors build up and problems surface late. A short, repeatable close keeps the records clean and makes the [management accounts](/management-accounts-explained) quick to produce.

- Bank feeds are up to date and every bank and card account is included. - Sales invoices raised in the month are recorded, including any you have not yet sent. - Supplier bills and receipts are captured, including expense claims.

- Each account agrees to the statement balance at month end. - Unmatched items are explained, coded or queried.

- Aged debtors reviewed, with late payers chased. - Aged creditors reviewed against what you expect to owe. - Anything unusual, such as old unpaid items or credit balances, is investigated.

- Payroll journals agree to the payroll reports, including PAYE and pension liabilities. - VAT control account is reasonable against the period's sales and purchases.

- Accruals for costs received but not yet invoiced. - Prepayments for costs paid that relate to future months. - Depreciation and, where relevant, deferred or accrued income.

- Profit and loss compared with the previous month, budget or forecast. - Balance sheet checked for anything that looks wrong. - Large movements explained in plain language.

- Close the month so earlier figures are not changed by accident. - Send the pack or key figures to the people who need them. - Update the cash flow forecast with actual results.

For a small business with clean records, a close often takes a few days. The first few months are usually slower as gaps and old problems are cleared. Setting a fixed timetable, for example by the fifth working day, helps it stick.

Some owners do the close themselves, some use an in-house bookkeeper, and many outsource it. If you want a second pair of eyes, our [bookkeeping service](/bookkeeping) keeps the records current, and our [finance function service](/finance-function) adds management accounts and forecasting on top. For the wider set of controls investors expect, read our [founder finance controls guide](/founder-finance-process-guide) and our guide to [building a cash flow forecast](/cash-flow-forecasting-guide).

If your month end is late, painful or missing altogether, [request a call](/contact) and we will suggest where to start.