Month-end close
Closing a period means saying: this month is finished, these numbers are final, nobody edits them again. It is what separates books you can report from books that keep shifting under you.
Why close at all
Without a close, last March's profit changes every time somebody backdates an entry. You cannot compare months, you cannot trust a tax return you already filed, and your accountant cannot sign anything.
Closing draws a line. After it, corrections happen as adjustments in the current period — visible and explained — instead of silent edits to history.
What blocks a close
The close screen lists everything still stopping a clean close:
| Blocker | Meaning |
|---|---|
| Reconciliation gaps | An account has not been reconciled to its statement |
| Transactions still awaiting accountant action | Entries flagged for review, unresolved |
| Receivables still outstanding | Customer balances needing confirmation or write-off |
| Supplier obligations still unresolved | Bills recorded but unsettled or unclear |
| Review pressure | A backlog large enough that the numbers are probably not final |
Work these down before closing. AI workflows has a blocked before close lane that gathers exactly this.
The sign-off path
For businesses working with an accountant, close runs through review stages rather than one button:
- Open — the period is live and being worked on.
- Accountant review — handed over; the accountant works through blockers and leaves an accountant review note.
- Senior review — a second pair of eyes, in firms that require one.
- Client approval — the owner sees what is being signed and approves.
- Closed — signed off, with the sign-off recorded against whoever did it.
Each stage takes a note. Six months later, "why was this period closed with that balance still outstanding?" has an answer.
Working alone? Approve and close it yourself — the same record is kept.
Locking the period
Closing can also lock the accounting period: a protected boundary that prevents entries being posted into a finished month. The screen shows your latest protected accounting boundary so you always know how far back the books are frozen.
Locking is the strongest guarantee. It is also the one your auditor will ask about.
Reopening
Sometimes you must. Reopening is a deliberate, authorised action requiring a reason, and it is recorded — a closed period that quietly became open again is exactly what makes books untrustworthy.
Prefer a correcting entry in the current period where you can. Reopen only when the original month would otherwise be genuinely wrong.
A workable monthly routine
- Record everything for the month; empty the review queue.
- Reconcile every account to its statement.
- Post accruals and prepayments that belong to the month.
- Post depreciation if it is due.
- Run payroll and confirm it posted.
- Clear the blockers list.
- Close — and lock the period.
- Read the reports knowing they will not move.
Related
- Reconciliation — usually the biggest blocker
- Adjustments — accruals, prepayments, correcting journals
- Working with your accountant — the review path
- For accounting firms — closing many clients at once