7 Steps: how a month-end close is done

Month-end closing is a method. The process follows a series of well-defined steps that bring financial clarity to the business. Speed and accuracy depend on structure, discipline, and clean data. Here's how it typically works:

1. Collect all financial data

Start by gathering the raw materials: bank statements, credit card reports, invoices, bills, payroll summaries, and data from your ERP or accounting system. Missing inputs here will stall the entire close.

2. Reconcile accounts

Start with pre-accounting: check that internal records match external sources. This includes:

• Bank and credit card reconciliations
• Accounts receivable and payable balances
• Intercompany transactions, if applicable

3. Post accruals and adjustments

Not all transactions arrive neatly by month’s end. That’s where accruals and deferrals come in. Book revenue earned but not yet invoiced. Record expenses incurred but not yet billed. Make manual journal entries where needed.

4. Review the general ledger

Scrub the ledger for errors, duplicates, or odd spikes. Investigate discrepancies. Confirm account classifications. This is the moment to catch mistakes before they snowball into bigger problems.

5. Prepare internal reports

Summarize financial performance with clean, up-to-date numbers. Common reports include:

• Profit and loss (P&L) statement
• Balance sheet
• Cash flow statement
• Department or project-level breakdowns

These reports feed leadership, investors, and tax authorities. They also guide internal decisions.

6. Approve and close

Once reviewed and confirmed, the period is closed in the accounting system. No further edits are allowed. You’re now ready to roll into the next month.

A smooth close depends on repeatable processes and clear ownership. Everyone needs to know what they’re responsible for and by when. With the right setup, month-end closing becomes less of a grind and more of a habit. The kind that drives better business decisions.

7. Information needed by accounting to close the monthly books

To close the books accurately and on time, accounting teams need a full picture of the company’s financial activity for the month. Data needs to be complete, timely, and correct. Without it, the monthly closing slows down or breaks entirely.

Here’s what accounting depends on:

1. Bank and credit card statements: up-to-date statements are essential for reconciling cash and confirming that transactions posted by the bank match the books. Missing or delayed statements can block the close on day one.
2. Invoices and bills: all customer invoices (outgoing) and vendor bills (incoming) must be entered and accounted for. This includes recurring costs like rent or SaaS tools, and one-offs like contractor fees or travel.
3. Payroll data: payroll often spans multiple systems. Accounting needs gross pay, taxes, benefits, and bonuses or commissions. Timing matters: Was payroll run on the last day of the month, or does it spill into the next?
4. Expense reports and corporate card transactions: employee expenses and corporate card spending must be submitted, categorized, and approved. This data often lags, proactive reminders can speed things up.
5. Inventory and COGS (if applicable): for product companies, month-end inventory counts and cost-of-goods-sold data are key inputs. Without them, margin and profitability reports won’t be accurate.
6. Revenue recognition inputs: if your business recognizes revenue over time, like SaaS or long-term contracts, accounting needs details on deliverables, timelines, and performance obligations to record revenue correctly.
7. Prepaids, accruals, and other adjustments: non-cash items like prepaid expenses, depreciation, or accruals require supporting schedules. These may come from finance, ops, or external partners.

The month-end workflow

Closing the books used to mean one thing: long hours, dozens of Excel files, and a flurry of emails to answer basic questions. Today, that’s no longer the only way. The month-end workflow has changed. For teams willing to modernize, it’s become faster, cleaner, and more collaborative.

Traditional workflows were built for accountants, not teams

In a classic setup, the month-end close followed a rigid, mostly manual sequence: Bank reconciliations. Invoice matching. Journal entries. Trial balances. Each step was siloed, often delayed by missing data or miscommunications. Collaboration meant walking over to someone’s desk. Transparency was an afterthought.

Worse, the process didn’t scale. As a company grew, the complexity multiplied: more transactions, more stakeholders, more friction. It was risky. Errors crept in. Insights came too late. And the finance team became the bottleneck instead of the enabler.

Modern month-end closing is a team sport

Today’s best workflows look very different. They rely on real-time data, not static spreadsheets. Tasks are tracked in project management tools, not someone's head. Teams work together in shared dashboards. And automation takes care of the grunt work. It pulls bank feeds, categorizing expenses, and flagging inconsistencies.

This shift is about control. Finance leaders can now see exactly where the close stands, who’s responsible for what, and what’s blocking progress. Founders can get early visibility without waiting for final numbers. Accountants can focus on judgment calls instead of copy-pasting data.

Automation handles the routine, humans handle the nuance

Software helps to eliminate repetitive tasks. The real value lies in how it supports collaboration. When everyone works from the same source of truth, whether it’s a live accounting system or a shared closing checklist, mistakes drop and trust rises.

The result? A month-end close that’s not only faster, but more accurate, more transparent, and a lot less painful.

What are key roles and responsibilities in the book closing process?

A smooth month-end close depends on clear roles. When everyone knows what they’re responsible for, the process runs faster, cleaner, and with fewer surprises. Whether the team is in-house, outsourced, or a mix of both, knowing who does what is non-negotiable.

Bookkeeper: first line of order

The bookkeeper handles the groundwork. They collect receipts, record transactions, reconcile bank accounts and keep the ledger up-to-date. If their work is sloppy or delayed, everything else slows down. If it’s sharp, the rest of the close becomes much easier.

Controller: keeper of accuracy 

The controller takes over where the bookkeeper leaves off. They review the books, check for missing entries, handle accruals and deferrals, and make sure everything complies with accounting standards. They manage the close like a project, chasing open tasks and signing off on the numbers.

CFO: from numbers to narrative

The CFO isn’t just looking at accuracy. They focus on what the numbers mean. They translate the close into reports, insights, and strategic actions. They communicate with founders, boards, and investors. And they ask the bigger questions: Are we hitting targets? Is our cash position healthy? What’s changing in the business?

In-house vs. external: ownership is key

Some companies keep all roles internal. Others outsource parts of the close, especially bookkeeping and controlling. Both setups can work, but clarity matters. Someone inside the company must still own the process. You can’t outsource responsibility. Whether it’s the finance lead or the CFO, someone needs to keep the timeline tight, the tools in sync and the team aligned.

What matters most isn’t who carries the title but every task has a name next to it. That’s how you avoid dropped balls, missed deadlines, and last-minute fire drills. Clear roles build trust. And trust is what keeps the close moving.

Best practices for smoother month-end closing

The close doesn’t have to be a scramble. With the right habits and tools, it can become a steady rhythm. These best practices save time, and raise the quality of your numbers and the confidence behind your decisions.

Automate what doesn’t need a human

Every minute spent copying data between systems is a minute wasted. Use tools that sync bank feeds, pull invoices automatically, and match payments to transactions. Automation reduces errors, speeds up repetitive tasks. It frees up the team to focus on judgment, not data entry.

Reconcile early and often

Don’t wait until the last day of the month to reconcile accounts. The closer you get to real-time reconciliation, the less cleanup you’ll face at the close. Bank balances, credit cards, payroll entries: keep them aligned as you go. It’s faster in the long run, and it gives you better visibility throughout the month.

Keep a clean audit trail

Every adjustment should be traceable. Every document should be easy to find. Whether you're preparing for an audit or just explaining last quarter’s jump in software costs, good documentation pays off. Use tools that track changes and attach supporting files directly to entries. Your future self, and your auditor, will thank you.

Set realistic timelines

A fast close is great. A reliable one is better. Don’t chase speed at the expense of accuracy. Define a close calendar that fits your business and stick to it. Be honest about dependencies: when payroll runs, statements arrive, approvals happen. Then work backwards from there. Consistency builds confidence.

The best finance teams don’t rely on heroics. They build smart systems, refine their process, and improve month by month. That’s how a painful close becomes a manageable one, and eventually, a competitive edge.

Do you want to see how it's done in the real-world? Read the 9x case study, to see how they automated 90% of their pre-accounting process and saved 8 hours each month.

Summary: Month-end closing

Month-end closing is the backbone of a company’s financial hygiene. It’s the structured process of reviewing, reconciling, and finalizing all financial activity from the past month. Done well, it creates clarity, reduces risk, and builds trust in the numbers. Done poorly, it leads to delays, guesswork, and missed opportunities. 

Q&A: Month-end closing

What is the month-end closing process?

The month-end closing process is the accounting workflow finalizing all financial activity for a given month. It includes reconciling accounts, reviewing revenues and expenses, booking accruals, and preparing financial reports. The goal is to ensure the company’s books are accurate, complete, and ready for internal or external reporting before the next month begins.

What is the month period closing?

Month period closing refers to officially closing the financial books for a specific calendar month within your accounting system. Once closed, no further changes can be made to that period. This helps lock in the data, maintain consistency, and prevent backdated edits that could skew reports or audits.

What is the difference between month-end closing and year-end closing?

Month-end closing happens every month and focuses on short-term accuracy and reporting. Year-end closing is a more extensive process that wraps up the entire fiscal year. It includes all month-end steps, plus additional tasks like inventory valuation, tax adjustments, depreciation, annual reporting, and audit preparation. Month-end closing keeps the business on track while year-end closing prepares it for taxes, investors, and regulatory compliance.