Accounting Tip of the Month: Close Your Books Monthly
Many small businesses wait until year-end to close their books. But if you’re only looking at your numbers once a year, you’re missing key insights the other eleven months.
At One 8 Solutions, we recommend closing your books every month—so you can catch issues early, stay on top of cash flow, and make confident business decisions year-round.
Here’s why it matters:
- Get Real-Time Insights
Monthly closings give you a clear, current view of your financials. Reviewing your Profit & Loss and Balance Sheet regularly helps you spot trends, identify inconsistencies, and understand what’s really happening in your business. - Catch Errors Early
Mistakes happen. Closing monthly helps you find data entry issues, missing expenses, or duplicate transactions—before they affect your reporting, taxes, or decisions. - Monitor Cash Flow with Confidence
Accurate, up-to-date books = a clearer picture of cash flow. You’ll know what’s coming in, what’s going out, and whether your numbers reflect reality—not guesswork. (And if you’re already reconciling your bank, credit card, and vendor accounts monthly, you’re halfway there.) - Understand Sales & Customer Behavior
Monthly reports help you evaluate sales trends and customer concentration. Who are your top customers? Who increased or decreased? Are you gaining—or losing—key accounts? - Use QBO’s AI Tools
QuickBooks Online includes new AI-powered insights to flag unusual transactions and missing entries. These tools help speed up monthly closings and improve accuracy. - Lock Your Books
Once closed, use QuickBooks Online’s “Close the Books” feature to lock the period. This prevents accidental changes and keeps your data clean for audits and tax prep.
Don’t wait for year-end to clean up your books. Monthly closings give you better control and insight—so you can lead with clarity.
Need help creating a monthly close process—or ready to outsource it altogether? One 8 Solutions is here to help. Schedule a conversation today!
