Prepare month-end close

What month-end close means

Month-end close means the books for a month have been reviewed and are ready to rely on.

For small businesses, that does not need to be a complicated accounting ritual. It should be a clear checklist: transactions reviewed, transfers checked, payees cleaned up, reports reviewed, and open questions resolved.

Close sequence

A simple close sequence works best.

Recommended order:

• Confirm bank syncs are current.
• Clear the review queue.
• Review transfer-like activity.
• Check uncategorized or holding accounts.
• Review payees that need cleanup.
• Check 1099 readiness if contractors were paid.
• Review Profit and Loss.
• Review Balance Sheet.
• Review Cash Flow or Trial Balance if needed.

Do not start with reports if obvious transaction work is still open.

What AI can check

The AI can help inspect the month.

Good prompts include:

• "What needs review before month end?"
• "Are there any transfers that look wrong?"
• "Which categories changed the most this month?"
• "Do any payees need cleanup?"
• "What is stopping this month from being close-ready?"

The AI should explain what it found and point you to the work that needs approval.

What the user approves

The user should approve sensitive changes.

Examples:

• Category changes.
• Transfer matches.
• New rules.
• Alias cleanup.
• Payee classification.
• 1099 readiness decisions.
• Owner draw or personal expense handling.

The AI prepares. The human approves.

Close-ready signals

The month is closer to ready when:

• The transaction queue is clear.
• No major holding categories have balances.
• Transfers are matched or explained.
• Contractor and W-9 issues are known.
• Reports look reasonable compared to prior months.
• Any open AI tasks are low-priority or intentionally deferred.