Monthly Close Services

The monthly close timeline varies depending on business complexity, transaction volume, and organization of financial records. For well-organized small businesses with straightforward transactions, we typically complete the monthly close within 3-5 business days after receiving all documentation. Medium-sized businesses with more complex operations generally require 5-10 business days. Larger organizations or businesses with multi-entity structures, inventory, or complex accounting requirements may need 10-15 business days.

Our systematic approach accelerates the monthly close timeline through parallel processing. While our senior bookkeepers focus on reconciling high-volume accounts, another team member handles adjusting entries and accruals. We implement automated reconciliation tools and AI-assisted transaction matching to speed up processing while maintaining accuracy. For established clients, we develop standardized closing checklists and templates that reduce turnaround time by 30-40% compared to the initial engagement.

For urgent situations—upcoming board meetings, financing deadlines, or tax filing requirements—we offer expedited monthly close services with dedicated team resources. These accelerated engagements typically complete 40-50% faster than standard timelines. Throughout the process, we provide regular status updates and milestone reports so you always know exactly where your books stand in the closing cycle.

Completing an accurate and timely monthly close requires access to specific financial records and supporting documentation. The foundation consists of bank statements for all business accounts, credit card statements, and statements from any other financial accounts used for business purposes. We need both the statements themselves and access to online banking platforms to verify transactions and resolve discrepancies during the reconciliation process.

Beyond bank records, our monthly close process requires access to your accounting software—QuickBooks Online, QuickBooks Desktop, Xero, or other platforms. If you maintain accounting records, we'll need export access to analyze existing entries. For businesses using manual systems or spreadsheets, we work with whatever records you have—sales ledgers, expense logs, or collections of invoices and receipts.

Source documentation is critical for verifying transactions recorded during the month. We need access to sales invoices issued to customers, vendor bills, expense receipts, and documentation of any cash transactions. Payroll records are essential for businesses with employees—we need payroll registers, direct deposit reports, and CRA remittance summaries. For businesses with inventory, we require physical inventory counts and valuation reports to calculate cost of goods sold accurately.

Additional documentation may include loan statements for interest calculations, lease agreements for payment schedules, and contracts for recurring revenue recognition. When documentation gaps exist, we communicate clearly about limitations and their impact on financial statement reliability, making recommendations for improved documentation processes going forward.

Our comprehensive monthly close services cover all aspects of the accounting cycle to deliver accurate, audit-ready financial statements. The process begins with bank and credit card reconciliation—we match every transaction in your accounting records to bank statements, investigating and resolving discrepancies promptly. This includes verifying deposits, checks, electronic transfers, and fees to ensure your books match actual bank balances perfectly.

We perform thorough accounts receivable reconciliation, aging analysis, and bad debt assessment. This involves verifying that all customer payments are recorded correctly, aging outstanding invoices, and estimating allowance for doubtful accounts according to your business's historical collection patterns. On the accounts payable side, we verify vendor balances, ensure all bills are recorded, and reconcile credit card transactions to statements.

Our monthly close includes comprehensive balance sheet account reconciliation. We reconcile prepaid expenses and calculate amortization, verify inventory valuation and adjust cost of goods sold, assess accrued expenses and record adjusting entries, and reconcile loan balances and calculate interest. We review equity accounts for owner transactions and ensure all capital contributions and draws are properly documented.

Income statement review focuses on revenue recognition verification, expense categorization accuracy, and detection of unusual items requiring investigation. We calculate and record depreciation and amortization expenses, make accrual adjustments for expenses incurred but not yet billed, and review accruals for revenue earned but not yet invoiced. The process concludes with preparing financial statements—balance sheet, income statement, and cash flow statement—along with key performance indicators and variance analysis comparing actual results to budget or prior periods.

Accrual accounting requires recording revenues and expenses when they are earned or incurred, not when cash changes hands. Our monthly close process identifies and records all necessary accruals and adjusting entries to ensure your financial statements accurately reflect your business's financial position under generally accepted accounting principles. This critical aspect of month-end closing prevents financial statement distortion from timing differences between cash flows and economic transactions.

For expense accruals, we identify expenses incurred during the month but not yet billed or paid. Common examples include utilities consumed but not yet billed, services received but not yet invoiced, interest expense accrued on loans, and wages earned by employees but not yet paid in the next pay period. We calculate these amounts based on usage data, contract terms, or payroll schedules and record adjusting entries to recognize the expense in the proper period.

Revenue accruals involve recognizing revenue earned but not yet recorded. This includes services performed but not yet invoiced, progress on long-term contracts, and subscription revenue earned for the current month. We review unbilled work and contract terms to calculate appropriate revenue accruals, ensuring income is recognized in the period it was earned rather than when payment is received.

Prepaid expense adjustments involve allocating expenses paid in advance to the correct accounting periods. When you pay insurance premiums, annual software subscriptions, or rent in advance, these payments create prepaid assets that must be amortized over the coverage period. We calculate and record the appropriate portion of each prepaid expense as current period expense, ensuring accurate matching of expenses to the periods they benefit.

Additional adjusting entries include depreciation calculations for fixed assets, amortization of intangible assets, bad debt expense estimation based on aging receivables, and inventory write-downs for obsolete or damaged items. Each adjusting entry is documented with supporting calculations and retained as part of your accounting records for audit trail purposes.

Timely monthly close delivers critical business advantages beyond basic compliance. Current, accurate financial information enables informed decision-making throughout your organization, not just at year-end. Management relies on timely financial statements to assess performance, identify trends, and make strategic decisions about pricing, expenses, growth opportunities, and resource allocation. When financial information lags by months, decisions are made based on outdated data, reducing effectiveness and increasing risk.

From a cash management perspective, timely monthly close provides visibility into your true cash position and working capital needs. You can identify cash flow issues early, take corrective action before problems become critical, and make more accurate cash flow projections. This visibility is particularly valuable for businesses with seasonal fluctuations, rapid growth, or tight cash flow margins.

Tax compliance benefits significantly from consistent monthly close processes. When books are closed monthly and reconciled to bank statements, year-end tax preparation becomes streamlined rather than frantic. Your accountant receives organized, reconciled financial data, reducing tax preparation time and cost. Monthly close also ensures GST/HST remittances are calculated accurately, preventing costly penalties from underpayment or overpayment.

Financial statement reliability increases with regular monthly closes. Consistent closing procedures prevent error accumulation, making discrepancies easier to identify and resolve quickly. When errors are identified and corrected promptly, financial statements remain reliable throughout the year, not just at year-end after extensive cleanup. This ongoing accuracy builds lender confidence, supports financing applications, and prepares your business for audits due diligence.

Operational efficiency improves when monthly close becomes routine. Your team develops standardized procedures, documentation becomes systematic rather than last-minute, and the accounting department functions smoothly without month-end crunches that disrupt normal business operations. This professional approach positions your business for growth by demonstrating financial discipline to potential investors, lenders, and acquisition partners.

Monthly close service costs vary based on business complexity, transaction volume, number of accounts, and overall scope of services required. We offer transparent, fixed-fee pricing based on your specific requirements, so you know exactly what to expect each month with no surprise charges or hourly billing run-ups.

For small businesses with straightforward operations—typically under 100 monthly transactions and basic account structure—monthly close services generally range from $300-600 per month. This includes bank and credit card reconciliation, basic financial statement preparation, and standard adjusting entries. Medium-sized businesses with higher transaction volumes, multiple accounts, inventory, or employees typically invest $600-1,200 monthly for comprehensive close services including accounts receivable and payable management, inventory reconciliation, and more complex adjusting entries.

Larger organizations or businesses with multi-entity structures, foreign currency transactions, complex debt arrangements, or specialized industry requirements generally require custom pricing ranging from $1,200-3,000+ monthly. These engagements include comprehensive reconciliation across all accounts, consolidated financial statements, variance analysis, key performance indicators, and dedicated support from senior accounting staff.

Our fixed-fee structure includes all standard services within the agreed scope—reconciliation, adjusting entries, financial statements, and consultation. Additional services such as cleanup of prior periods, process improvements, software implementation, or controller-level oversight are quoted separately based on time and complexity. We offer discounted pricing for quarterly or annual prepayment, and new client onboarding typically includes a one-time setup fee for initial system configuration and account reconciliation.

Value delivered extends far beyond the fee. Timely, accurate financial information prevents costly errors, supports better business decisions, reduces tax preparation costs, and positions your business for growth. Clients typically save more in tax optimization, error prevention, and operational efficiency than they invest in professional monthly close services.