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The monthly close, step by step
A close is a fixed routine. It runs the same way every month, so small errors get caught while they are still small.
- Collect the month Bank and card feeds, loan statements, payroll reports and processor payouts from Square, Toast, Stripe or Shopify come into the file.
- Code each transaction Every line goes to the right account. Bank rules are checked so they do not quietly push errors into the wrong place.
- Send one question list Lines that only you can explain go on one list. You answer it once, not in a stream of texts.
- Reconcile every account Bank, card and loan balances are tied to the statements. Clearing accounts are emptied.
- Close and report The period is locked, and you get the reports with a few lines on what moved and why.
What it looks like for San Diego businesses
A craft brewery in Miramar has taproom sales, distributor invoices and keg deposits in the same month. Monthly books keep those streams apart, so the owner can see which one pays the rent.
A vacation rental owner in Mission Beach has payouts from booking platforms that net out fees and cleaning charges. Monthly books gross those payouts up, so income and costs both show. A plumbing company in Vista needs to know if last month's jobs made money before it bids the next round of tenant improvements. A biotech startup in Torrey Pines needs burn and runway that match the bank before the next board meeting.
The work is the same routine in each case. What changes is which accounts, classes and reports matter to you.
Your part and the bookkeeper's part
| Task | Who does it |
|---|---|
| Keep your bank, payroll provider and CPA | You |
| Connect feeds and send statements the feeds miss | You, once at setup |
| Code, reconcile and close each month | Bookkeeper |
| Answer the monthly question list | You, usually by email |
| Prepare the monthly reports and notes | Bookkeeper |
| Hand a clean file to your CPA at year end | Bookkeeper |
Reports you get each month
- Profit and loss for the month and the year to date
- Balance sheet with every bank, card and loan account reconciled
- Accounts receivable and payable aging, if you invoice or pay bills in the software
- Profit by class or location, if you track crews, trucks, properties or shops
- Short notes in plain words on what changed and what needs your answer
Local filings that depend on clean monthly books
Sales tax returns to the California Department of Tax and Fee Administration use the taxable sales figure from your books. Combined rates differ by city in San Diego County, so sales in Oceanside and sales in Chula Vista may not carry the same rate. Your books need to record where the sale happened if you sell in more than one place.
Short-term rental hosts in the City of San Diego remit Transient Occupancy Tax monthly. The return is due by the last day of the following month. A host who closes the books each month has the gross rent figure ready before that date.
Rates and due dates change. Check the CDTFA rate table and the City Treasurer's TOT page before you file.
When monthly books make sense
You likely need monthly help if your bank reconciliation is more than two months behind, if you learn your profit only when the CPA calls in March, or if you spend weekend time sorting receipts. It also makes sense when a lender, investor or partner asks for monthly statements and you cannot produce them quickly.
If your books are already far behind, start with catch-up bookkeeping or a bookkeeping cleanup. Monthly work then picks up from a balance you can trust.
Where we work
We keep books for businesses across the City of San Diego, North County, the South Bay and East County.
- Carlsbad
- Chula Vista
- Downtown San Diego
- El Cajon
- Encinitas
- Escondido
- La Mesa
- Oceanside
- San Diego
- San Marcos
- Vista
Questions
Which software do you use?
Whatever you use now: QuickBooks Online, QuickBooks Desktop, Xero or another system. The work stays in your file and you keep the login.
Does monthly bookkeeping include payroll?
Payroll runs through your payroll provider. The bookkeeper records the payroll reports correctly in the books and ties them to the bank.
What if a month already went by without anyone touching the books?
That month is caught up first. Then the regular close starts from a reconciled balance.
Will my sales tax return be filed for me?
Ask on the call. At minimum, the books give you or your CPA a clean taxable sales figure for each return.