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Month-End Close in QBO
12 min
Basic+175 XP
Crash Courses · Basic

Month-End Close in QBO

Execute the full QuickBooks month-end close workflow -- reconcile, post adjustments, lock, and deliver reports.
12 min read+175 XP on completionCert: QuickBooks Online
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Month-End Close in QBO

QBO Month-End Close Checklist

?--? 1. Enter all transactions for the period (verify nothing is missing)
?--? 2. Process all bank feed transactions to zero in For Review
?--? 3. Reconcile all bank accounts (difference = $0)
?--? 4. Reconcile all credit card accounts (difference = $0)
?--? 5. Review AR Aging -- apply any unapplied payments
?--? 6. Review AP Aging -- confirm no overdue bills need escalation
?--? 7. Post adjusting journal entries (accruals, prepaid amortization, depreciation)
?--? 8. Verify Undeposited Funds = $0
?--? 9. Run Trial Balance -- confirm it balances
?--? 10. Review P&L for anomalies (zeros where they shouldn't be, large variances)
?--? 11. Review Balance Sheet -- verify equity ties to prior period + net income
?--? 12. Export and save reconciliation reports
?--? 13. Lock the period: Gear > Account and Settings > Advanced > Close the Books
?--? 14. Export and send report package to client/supervisor

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Posting an Adjusting Journal Entry

+ New > Journal Entry
  > Journal Date: last day of the period
  > Entry No: use consistent numbering (AJE-2026-10-001)
  > Line 1: Dr. [Expense Account] [amount]
  > Line 2: Cr. [Liability/Asset Account] [amount]
  > Memo: clear description of why this entry exists
  > Save

Every AJE must have a memo. "Adjustment" is not a memo -- be specific.

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Writing Off a Bad Debt in QBO

  1. Create a Credit Memo for the customer
  2. Set the account to Bad Debt Expense (create this account if needed)
  3. Apply the credit memo to the uncollectable invoice
  4. The invoice is now zero -- bad debt is recorded as an expense

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Locking the Period

Gear > Account and Settings > Advanced > Close the Books > set closing date > set password

Any edit to a prior period will require this password. If someone asks to edit a closed period:

  1. Determine why
  2. Consult supervisor
  3. Never unlock without documented approval

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Delivering the Report Package

Folder: [Client Name] / [YYYY-MM]
Files:
  - YYYY-MM-[Client]-ProfitLoss.pdf
  - YYYY-MM-[Client]-BalanceSheet.pdf
  - YYYY-MM-[Client]-ARAgingSummary.pdf
  - YYYY-MM-[Client]-APAgingSummary.pdf
  - YYYY-MM-[Client]-Recon-[BankName].pdf

Send with a brief 3-line summary: revenue, net income, cash balance. Clients should never have to dig for the key numbers.

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