Categorize the bank feed
Work through every "For Review" transaction in Banking. Apply bank rules where they fit, split mixed transactions, and leave nothing uncategorized — uncategorized spend is the #1 reason closes drag into week two.
✓ Bank Feed Agent drafts every categorization; you approveReconcile bank & credit card accounts
Reconcile each account against its statement, starting balance to ending balance. Investigate any difference immediately — a $0.01 variance today is a $400 mystery in three months. Save the reconciliation report as your audit trail.
Code AP bills
Enter or sync every vendor bill dated in the month, coded to the right GL accounts and classes. Match bills to purchase orders where you use them. Anything dated next month waits — cut-off discipline is what keeps the P&L honest.
✓ AP Bill Coding Agent drafts the coding; you approveAmortize prepaids & post accruals
Run this month's slice of every prepaid schedule (insurance, software, rent) and accrue expenses incurred but not yet billed — payroll, utilities, contractor invoices. Missed amortization silently overstates assets.
✓ Prepaids Agent builds schedules & posts after approvalRecord fixed assets & depreciation
Capitalize new asset purchases above your capitalization threshold, retire disposed assets, and post this month's depreciation for each asset. Tie the fixed asset subledger to the GL balance before moving on.
✓ Fixed Asset Agent tracks & depreciates; you approveReview 1099 contractors
Confirm every contractor paid $2,000+ in 2026 has a valid W-9 on file, legal name and TIN match, and there are no duplicate vendor records that would double-report. January-you will thank December-you.
✓ 1099 Agent watches W-9s year-round & flags duplicatesReconcile balance sheet accounts
AR to the aging report, AP to unpaid bills, loans to statements, payroll liabilities to filings. Every balance sheet account should tie to a supporting schedule — no plug figures, no "we'll fix it next month."
Review P&L variances
Compare this month to last month and to budget. Investigate anything that moved more than your materiality threshold — miscategorized transactions hide here. This is the review that turns a "done" close into a right close.
Lock the period
Settings → Account and settings → Advanced → Accounting: set the closing date to month-end and require a password for changes. Then send the financials. A close that isn't locked isn't closed.
Want steps 1, 3, 4, 5 & 6 drafted for you?
CoController AI's agents draft the bank feed, bill coding, prepaids, fixed assets, and 1099 review inside QuickBooks Online. Nothing posts without your approval. First company free forever.
Start freeClose checklist FAQ
How long should a QuickBooks Online month-end close take?
A clean single-entity close in QuickBooks Online typically takes 2–5 business days once bank feeds are categorized and reconciliations are current. Firms running many clients aim for a 5-day close cadence with daily task blocks.
What is the correct order for a QBO month-end close?
Categorize bank feed transactions first, then reconcile bank and credit card accounts, code AP bills, post prepaid amortization and fixed asset depreciation, review 1099 contractor records, reconcile balance sheet accounts, review the P&L for variances, then set the closing date.
How do I lock a closed month in QuickBooks Online?
Go to Settings (gear icon) > Account and settings > Advanced > Accounting, then set the closing date and optionally require a password to change closed transactions. This prevents accidental edits to finished periods.