---
title: "Month-End Close Checklist | Ledgerbrook"
source: https://ledgerbrook.com/tools/month-end-close-checklist/
description: "Interactive month-end close checklist for QuickBooks Online. Track reconciliations, save progress, and download templates."
---

Interactive Procedure

# Month-End Close Checklist

A QuickBooks Online month-end close requires completing 5 core reconciliation phases within 5 to 7 business days: clearing bank feeds, reconciling balance sheet accounts to zero discrepancy, verifying payroll tax liabilities, reviewing subledger aging, and locking the books with a closing date password.

Month-End Closing Status

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Ledgerbrook Standard Procedure

Client: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Period: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Closed By: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

## Phase 1: Cash & Bank Feed Clearing

Day 1–2

Clear All Bank & Credit Card Feed Queues

Match all deposits, transfers, and vendor payments. Ensure zero unprocessed transactions remain in the 'For Review' tab.

[📘 How to fix duplicate feed entries →](/fixes/duplicate-transactions-bank-feed/)

Reconcile Operating, Savings & Credit Card Accounts

Verify beginning balance matches statement, enter ending date/balance, and confirm $0.00 difference.

[📘 How to resolve reconciliation breaks →](/fixes/bank-balance-wont-reconcile/)

Clear Undeposited Funds / Payments to Deposit

Audit payment clearing account. Ensure every customer payment matches an actual bank deposit on statement.

[📘 Undeposited Funds cleanup guide →](/fixes/undeposited-funds-pileup/)

## Phase 2: Accounts Receivable & Accounts Payable

Day 3

Review A/R Aging Summary & Unapplied Credits

Inspect accounts past 60/90 days. Resolve unapplied customer payments and verify against customer statements.

Review A/P Aging Summary & Unapplied Vendor Credits

Confirm all vendor bills for the period are entered. Reconcile vendor statements and credit card clearing accounts.

Reconcile Inventory & Cost of Goods Sold (COGS)

Tie perpetual inventory ledger in QBO to physical count adjustments or POS sync (Shopify, Toast, Square).

## Phase 3: Payroll, Sales Tax & Liability Tie-Out

Day 4

Reconcile Gross Wages & Payroll Tax Liabilities

Match payroll clearing account against Gusto, ADP, or Paychex payroll summary reports. Clear wage clearing to $0.

Reconcile Sales Tax Payable

Verify collected sales tax matches state reporting liability. Ensure tax payments post against liability, not expense.

Tie Out Notes Payable & Credit Lines to Statements

Split monthly debt service into principal reduction (liability) and interest expense according to amortization.

## Phase 4: Balance Sheet Review & Prepaids

Day 5

Verify Opening Balance Equity is Exactly $0.00

Check equity section. Reclassify any automated startup balance entries to Retained Earnings or Owner Capital.

[📘 How to zero Opening Balance Equity →](/fixes/opening-balance-equity/)

Amortize Prepaid Expenses & Record Monthly Depreciation

Post recurring journal entries for prepaid insurance, software subscriptions, and fixed asset depreciation.

Reconcile Intercompany & Due-To / Due-From Balances

For multi-entity companies, confirm intercompany mirror accounts across entities eliminate cleanly to $0 discrepancy.

## Phase 5: Financial Review & Book Locking

Day 5–7

Perform P&L Month-over-Month Flux Analysis

Compare current month revenue and expenses against prior month and budget. Investigate variances over 15%.

Generate & Package Standard Financial Reports

Export Balance Sheet, Profit & Loss (standard & YTD), and Statement of Cash Flows with management summary notes.

Set Closing Date & Password in QuickBooks Online

Navigate to Account and Settings -> Advanced -> Close the books. Set password to prevent backdated adjustments.

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ResetPrint / Save PDF

Download Template

Get this 15-point closing procedure as a spreadsheet template.

[📥 Download Checklist (.csv)](/downloads/month-end-close-checklist.csv)

Need Help Closing Client Files?

Ledgerbrook closes books under your firm's name for just **$99/file**.

[Outsource Close (From $99/mo) →](/contact/?service=monthly)

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White-Label Close Capacity

## Tired of closing client files on evenings and weekends?

Ledgerbrook delivers complete month-end close for CPA and bookkeeping firms under your name. We reconcile bank feeds, tie out balance sheets, and package financial reports for just **$99 per client file**.

[Explore Firm Partnerships →](/for-bookkeeping-firms/)

Frequently Asked Questions

## QuickBooks Month-End Close Best Practices

### Why is setting a closing date password in QuickBooks critical?

Setting a closing date password locks reconciled periods against accidental backdated edits, deleted checks, or modified invoices that would break tax filings or prior balance sheet reconciliations.

### How many days should a month-end close take?

Best-practice bookkeeping teams close the books within 5 to 7 business days following the end of the calendar month, giving management timely visibility before the 15th.

### What should I do if my bank reconciliation has a discrepancy?

Never allow QuickBooks Online to auto-adjust discrepancies into 'Reconciliation Discrepancies' or force an entry into Opening Balance Equity. Isolate whether the error is caused by a changed beginning balance, uncleared duplicate check, or an unreconciled transaction using our diagnostic guide.

Ledgerbrook Standard Month-End Close Procedure • ledgerbrook.com • Austin, TX