Monthly Close, Part 1: Lock, Reconcile, Categorize (Steps 1–3)

Running a business is tough—your books shouldn’t add friction. This is Part 1 of our 60‑Minute Monthly Close series for small businesses. Start here, set your cutoff rules, and get your bank data tight.

Step 1) Lock the period

What: Set the month‑end date. Disable back‑dating except for an approved user. Why: Prevents accidental edits that break reconciliations. Pro tip: In QuickBooks/Xero/Zoho, enable a closing‑date password and keep a change log.

Step 2) Import & reconcile bank/credit cards

What: Pull statements; match transactions; resolve unmatched items. Why: Bank recs are the foundation for accurate financials. Pro tip: Create rules for recurring vendors (Stripe fees, SaaS tools) to save time.

Step 3) Categorize uncoded transactions

What: Clear “Uncategorized” buckets to zero. Why: Uncoded items distort margins and taxes. Pro tip: Use vendor‑level defaults and memo keywords to auto‑classify.

Call to action

Want help implementing these steps? Book a quick consult or try our Financial Health Assessment to see where your books stand.

Local note

We’re based in Monument, Colorado and support the Colorado Springs metro and the Front Range—plus clients nationwide.