Monthly Financial Close Checklist

Check the client portal (SmartVault, Liscio, TaxDome, or ShareFile) for every operating bank account and credit card. Missing statements are the most common reason close slips past Day 5 — chase the client before starting recs, not after.

Send a single consolidated request listing every missing statement with account last-four. Set a hard deadline 48 hours out — if statements aren't in by then, escalate to the engagement partner before the rest of close stalls.

Verify the Gusto, ADP, or Rippling journal entry hit the GL for the last pay date in the period, including employer FICA, FUTA, SUTA, and 401(k) match. Confirm tax deposits cleared the bank.

Tie ending bank balance to GL cash for every account. In QBO, use the reconcile tool with the statement ending balance and date — do not force-reconcile to a difference. Save the reconciliation report PDF to the workpaper folder.

Pull the uncleared list and flag anything older than 30 days. Stale checks over 90 days get voided and reissued or escheated per state unclaimed-property rules. Deposits in transit older than 5 business days are usually posting errors.

Tie statement ending balance to GL liability balance. Confirm the payment to the card cleared the operating account. Watch for personal charges run through the business card — flag for owner reimbursement or distribution coding.

Run the A/R aging summary as of period end and tie the total to the GL receivables balance. Investigate any difference — usually a journal entry posted directly to A/R without a customer, which breaks the sub-ledger.

Run the A/P aging summary as of period end and tie to the GL payables balance. Confirm Bill.com or Ramp sync posted every approved bill in the period; out-of-sync AP automation is a frequent cause of variance.

For clients with inventory, tie the perpetual balance to the GL inventory account. Record any cycle-count adjustments through cost of goods sold with supporting count sheets attached.

Add current-period acquisitions and remove disposals on the depreciation schedule. Post the monthly depreciation JE per the schedule. Confirm any disposals booked the gain or loss correctly and removed accumulated depreciation.

When period end falls mid-pay-period, accrue gross wages and employer taxes for the worked-but-unpaid days. Reverse the entry on the first of the next period so the next pay run posts cleanly.

Run the prepaid schedule (insurance, software annual subscriptions, retainers) and post the monthly expense. Recognize the period's portion of deferred revenue per the contract terms. Tie ending balances on each schedule to the GL.

Move items identified during recs to the correct GL account, class, or location. Every reclass JE needs a memo describing what was originally posted and why it's moving — partners will block close on bare entries.

Run the working trial balance with prior-month and prior-year comparison columns. Flag any line moving more than 10% or $5,000 for explanation. Negative balances on asset or expense accounts almost always indicate a posting error.

Produce the income statement (current month, YTD, prior-year comparison), balance sheet, and cash flow statement using the indirect method. Pull from QBO, Xero, or Sage Intacct standard reports; format consistently month over month.

Cover top revenue and expense variances vs. budget, A/R aging concerns over 60 days, current cash position with weeks of runway, and KPIs the client tracks (gross margin, customer count, AR turnover). Two pages, plain English.

Send the partner the trial balance, financials, AJE listing, reconciliation reports, and commentary draft. Use the firm's review-note template so feedback comes back structured, not scattered.

In QBO, set the closing date and password under Account and Settings → Advanced. In Xero, use Lock Dates. This stops the client or staff from posting back into a closed period and breaking the recs.

Upload financials and commentary to the client portal (TaxDome, Liscio, SmartVault) — never email PDFs with financial data. Send a notification with a one-paragraph summary of the month.