Why Your Business Needs a Month-End Close Process (Even If You’re Small)
Many small business owners track revenue and expenses but don’t have a formal month-end close process—and that’s a costly mistake.
Without closing your books each month, you risk inaccurate financials, missed tax deductions, and cash flow surprises.
What is a Month-End Close?
It’s a process that ensures your financial records are complete and accurate at the end of each month. It helps you catch errors early, monitor trends, and make informed business decisions.
How to Do It (Without Overcomplicating Things):
✅ Reconcile bank and credit card accounts – Match transactions with your statements.
✅ Review unpaid invoices and bills – Follow up on outstanding payments.
✅ Categorize expenses properly – Misclassified expenses can skew financial reports.
✅ Check your cash flow – Do you have enough to cover next month’s expenses?
✅ Run key reports – Profit & loss, balance sheet, and cash flow statement give you a snapshot of your financial health.
A strong month-end close means fewer surprises, smoother tax filing, and better business decisions.
Start doing this, and your future self (and accountant) will thank you!
