The Monthly Close in 60 Minutes

Most small-business owners do their books once a year — in a panic, the week before taxes are due. It's miserable, expensive, and almost guarantees missed deductions.

The alternative is a one-hour monthly close. Done consistently, it keeps you tax-ready year-round, surfaces problems while they're still fixable, and turns bookkeeping from a yearly nightmare into a Tuesday-morning routine.

Here's the exact checklist we use with our clients.

The 60-Minute Close (Step by Step)

Minutes 0–15: Reconcile every bank and credit card account

Pull each statement. Match the ending balance in QuickBooks to the statement balance. Investigate any difference — a missing transaction, a duplicate entry, or a fee you forgot to record. Don't move on until every account ties out to the penny.

Minutes 15–30: Categorize uncategorized transactions

Run the Uncategorized Expenses report. For each line, ask: what was this for, and what business purpose did it serve? Apply the correct category. If a transaction is personal, move it to Owner's Draw, not 'Miscellaneous.'

Minutes 30–40: Review AR and AP

Open the Accounts Receivable Aging report. Anyone over 30 days late gets a polite follow-up email today. Over 60 days, a phone call.

Then the Accounts Payable Aging. Any bills due in the next 7 days get scheduled or paid. This is the step that prevents late fees and protects vendor relationships.

Minutes 40–50: Run and review the P&L

Generate a Profit & Loss for the month, compared to last month and the same month last year. Look for:

• Revenue swings — up or down, both need an explanation.
• Category surprises (utilities doubled? someone left the AC on).
• New vendors or unusual one-off expenses.

If anything looks off, fix it now while you still remember the context.

Minutes 50–60: Save reports and close the month

Export the P&L, Balance Sheet, and Cash Flow Statement to a 'Monthly Closes' folder. In QuickBooks, set the closing date — this prevents accidental edits to past months.

Take 60 seconds to jot down one observation about the business. Over a year, those notes become the most valuable financial document you own.

Why This Works

Bookkeeping problems compound. A miscategorized transaction in February becomes a 90-minute investigation in November when you've forgotten the context. Doing it monthly keeps everything within the recent-memory window and lets you catch issues — duplicate charges, fraud, vendor errors — when they're still actionable.

It also means tax prep is just… running a report. Not a three-week archaeological dig.

If 60 Minutes Sounds Like Too Much

Most owners we work with eventually decide the hour is better spent on the business itself. That's exactly what our monthly bookkeeping plans are for — we run this checklist for you, every month, and send you a one-page summary.