# Quickbooks Month End Close

> Use when the user mentions closing the books, month-end, month end close, monthly close, MEC, reconciling QuickBooks, finalizing financials, closing QBO, or asks "what do I need to do to close last month" / "help me close November" / "QuickBooks balance doesn't match the bank". Also triggers on bookkeeping cleanup, finding missing transactions, or reviewing P&L before month close.

- Skill: `fengyiqicoder/quickbooks-month-end-close` (Agent Skill, multi-file: 4 files)
- Install (CLI): `npx skillmds@latest add fengyiqicoder/quickbooks-month-end-close`
- Raw SKILL.md: https://api.skillmd.com/api/skills/fengyiqicoder/quickbooks-month-end-close/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: fengyiqicoder (https://skillmd.com/u/fengyiqicoder)
- Updated: 2026-09-17
- Page: https://skillmd.com/skills/fengyiqicoder/quickbooks-month-end-close

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# QuickBooks Month-End Close

## Overview

Month-end close is the disciplined process of finalizing a period's books so financial statements reflect reality. Skipping steps creates compounding errors that take **3-5x longer** to fix later. This skill walks the user through GAAP-aware close in QuickBooks Online (QBO) or Desktop, catches the **12 most common close errors**, and produces a clean close memo.

**Core principle**: The bank statement is the truth. Everything in QuickBooks must reconcile to it. When it doesn't, find the *why* — don't paper over it with a journal entry.

## Workflow

### Phase 1: Pre-close sanity check (10 min)

Before the user does anything, ask for these 3 numbers from QBO **as of the last day of the closing month**:

1. **Cash balance** in each bank/credit account
2. **AR aging total** (Customers → Accounts Receivable)
3. **AP aging total** (Vendors → Accounts Payable)

Then ask: **"What's the bank statement balance for that same date?"**

If cash in QBO ≠ bank statement → there's a reconciliation gap. **Note it; don't fix it yet.**

### Phase 2: The 9-step close

Run these in order. **Order matters** — bank rec before journal entries before close-the-period.

1. **Bank & credit card reconciliation** — every account, every line. Use QBO Reconcile tool. End balance must match statement exactly.
2. **Clear "Uncategorized" transactions** — search `Uncategorized Income`, `Uncategorized Expense`, `Ask My Accountant`. Each one needs a real category.
3. **Match deposits to invoices** — undeposited funds should be empty or near-empty.
4. **Review AR aging** — flag invoices >60 days. Decide: collect, write off, or escalate.
5. **Review AP aging** — confirm all bills are entered. Check for duplicates (same vendor, same amount, different dates).
6. **Accruals & deferrals** — prepaid expenses, deferred revenue, unbilled receivables. Often missed.
7. **Payroll reconciliation** — gross wages, employer taxes, benefit deductions. Match to payroll provider report.
8. **Inventory adjustment** (if applicable) — physical count vs. QBO count.
9. **Run reports**: P&L, Balance Sheet, Cash Flow. Compare to prior month — investigate any line item that moved >20%.

### Phase 3: Close memo (Claude's deliverable)

After the user confirms steps 1-9, produce a one-page close memo. See [references/close-memo-template.md](references/close-memo-template.md) for the exact format.

### Phase 4: Lock the period

In QBO: Settings → Advanced → Accounting → **Close the books**. Set the close date and a password. This prevents accidental backdated changes.

## Critical checks (the 12 things that break close)

When you spot any of these, **stop and investigate before continuing**:

1. **Negative bank balance in QBO but not in real bank** → uncleared deposit, duplicate payment, or bank feed gap
2. **Opening balance changed since last close** → someone edited a prior-period transaction. Find who and what (Audit Log → filter by date)
3. **Owner's draw posted to Expenses** → reclassify to Equity
4. **Sales tax payable doesn't match next-period payment** → likely a sales tax misposting
5. **AR aging total ≠ Balance Sheet AR** → custom invoice with non-AR account
6. **Loan principal in Interest Expense** → split out principal vs. interest
7. **Credit card balance doesn't tie to statement** → personal expenses on business card, or vice versa
8. **Inventory asset moves with no COGS entry** → write-off without proper journal
9. **Payroll liability stays on books past pay date** → reconciliation issue with payroll service
10. **Sudden margin shift >5%** → category miscoding (e.g., shipping in COGS vs. Operating)
11. **Distributions ≠ K-1 distributions for partnerships** → tax-time landmine
12. **Foreign currency revaluation missing** → if any multi-currency transactions

For each, see [references/common-issues.md](references/common-issues.md) for the exact fix.

## What you (Claude) ask the user

Lead with **what** the user wants the books for: tax filing, investor reporting, internal review, sale prep. The close depth differs:

- **Tax filing** → must close all 12 months, accrual basis if required
- **Investor reporting** → emphasize margin trends, burn rate, runway
- **Internal review only** → cash basis often fine, less detail OK
- **Sale prep / due diligence** → full accrual, multi-year, every account reconciled

## Red flags — escalate to CPA

Don't try to fix these yourself. Tell the user to call their CPA:

- Restated prior period results
- Suspected fraud or embezzlement
- Bank balance discrepancies >$1,000 with no clear cause
- Multi-state sales tax compliance issues
- Anything involving stock options, equity compensation, or convertible notes

## Quick reference

| Symptom | First place to check |
|---------|---------------------|
| Cash doesn't match | Bank Feed → uncleared transactions |
| P&L looks wrong | Profit & Loss Detail → drill into the line |
| Balance sheet doesn't balance | Audit Log → who edited the opening balance |
| AR/AP totals wrong | Aging Detail report vs. account balance |
| New account appeared | Chart of Accounts → "Show inactive" |

## Output format for close memo

See [references/close-memo-template.md](references/close-memo-template.md).