A monthly close process helps organize financial records and identify discrepancies. Henriquez Accounting & Tax Services offers bookkeeping, tax preparation and business consulting. Agree the accounts, reporting frequency, deadlines and fees before work begins. Complete records and client responses affect delivery; accuracy, compliance and tax outcomes are not guaranteed.
Table of Contents
7 Tips for a Smooth Monthly Close
- Organize your financial documents. Use a simple folder taxonomy (invoices, receipts, bank statements) with month/year subfolders. Cloud storage + receipt capture keeps audit support at your fingertips.
- Finish reconciliations and review before closing the period. Apply the available closing-date controls, restrict access and document approved later adjustments; a closing date does not make transactions immutable.
- Reconcile bank, credit card, and key balance-sheet accounts monthly. Catch discrepancies early; tie cash, loans, and payroll liabilities to statements.
- Track expenses diligently. Keep receipts and business-purpose records, separate personal activity and review expense classification. Recording a cost does not establish deduction eligibility; meals, mileage and home-office costs have additional rules.
- Invoice quickly and follow up. Send invoices same-day, enable online payments, and work an A/R aging cadence (7/15/30-day reminders).
- Run a close checklist. Review cutoff and uncategorized transactions. Prepare accruals and deferrals required by the agreed financial-reporting basis, and reconcile book treatment to the permitted tax accounting method. Prepare the agreed financial reports with variance notes.
- Consult a pro when needed. Complex issues (multi-state sales tax, inventory, fixed assets, S-Corp comp) deserve expert review.
Optional Monthly KPI Pulse
- Gross/operating margin and payroll % of revenue
- Days cash on hand and cash conversion cycle
- A/R aging and collection targets based on customer terms, industry and cash needs; a universal target is not appropriate for every business.
- Budget vs. actual with 30-/60-day forecast
Common Recordkeeping Pitfalls
- Mixed personal/business spending → messy books and missed deductions
- Skipped reconciliations → surprise balances and audit risk
- No monthly close → tax season scramble and stale decisions
- Weak documentation for meals/mileage/home office → deductions disallowed
Potential Deliverables to Agree
Confirm which of the following services are available and included in the agreed scope, together with their frequency and responsibilities.
- Reconciliations and reporting at the frequency and scope agreed in the engagement.
- Quarterly tax projections with safe-harbor checks
- 1099/W-9 tracking and e-file, sales & use tax support
- Executive dashboard: margins, cash runway, A/R & A/P
Monthly Close FAQs
How often should I reconcile?
At least monthly—weekly if transaction volume is high or cash is tight.
What should be on my month-end checklist?
Review cutoff, uncategorized transactions, bank/credit-card/loan reconciliations, fixed assets and variance notes. Include reporting-basis adjustments and a separate book-to-tax reconciliation. A management-reporting entry does not by itself change the tax year in which income or deductions are recognized. Finish reconciliations and review before closing the period. Apply the available closing-date controls, restrict access and document approved later adjustments; a closing date does not make transactions immutable.
Do you fix messy books mid-year?
We can assess cleanup and prior-period adjustments after reviewing the records, opening balances and periods involved. Agree the correction scope and schedule before starting.
Can you handle sales tax and 1099s?
Confirm the applicable registrations, returns and information-reporting requirements, who will prepare and file them, and whether that work is included in your engagement. Bookkeeping alone does not establish that a filing service is included.
Ready to put your monthly close on rails?
Discuss your close process and filing needs with our team. Schedule a consultation to confirm the services and practitioner available for your engagement.
When engaging a provider for tax work alongside bookkeeping, check qualifications using the IRS guide to preparer credentials. Confirm who prepares returns and which responsibilities are separate from the monthly close.