Why a Structured Month-End Close Matters
Most sellers don't close their books at month-end, leading to chaotic year-end tax filings and missing profitability insights. A structured 90-minute close ensures:
- Accurate profit figures each month
- Early detection of cash flow issues
- Monthly trend analysis for decision making
- Minimal tax-time stress
- Clean books for audits or valuations
The 90-Minute Month-End Timeline
Minutes 1-15: Bank & Card Reconciliation
Match your QB/Xero account to bank statement. Verify all deposits and expenses posted correctly. Reconcile credit cards if used for business.
Minutes 16-30: Review Platform Payouts
Check Amazon Seller Central, Shopify, eBay for deposits and fees. Verify amounts match your records. Record any unexpected holds or chargebacks.
Minutes 31-45: Inventory Reconciliation
Count physical inventory vs QB/Xero balance. Record any discrepancies. Update COGS for new purchases. Note obsolete or damaged items.
Minutes 46-60: Categorize Transactions
Review uncategorized transactions. Ensure expenses go to correct accounts (COGS vs Operating). Fix any misclassified items.
Minutes 61-75: Generate & Review Reports
Run P&L statement, Balance Sheet, Cash Flow. Compare to previous months. Note unusual variances. Calculate key metrics (margin, growth).
Minutes 76-90: Document & Archive
Record closing notes. Archive reports. Set up next month's entry. Note items for accountant review if needed.
Detailed Checklist: Month-End Close
Bank & Payments (15 minutes)
Platform Reconciliation (15 minutes)
Inventory & COGS (15 minutes)
Transaction Review (15 minutes)
Report Generation (15 minutes)
Close & Documentation (15 minutes)
Month-End P&L Review
Once closed, analyze your P&L:
| Metric | Calculation | What It Means |
|---|---|---|
| Gross Profit Margin | (Revenue - COGS) / Revenue | % profit before operating costs |
| Operating Margin | (Net Profit) / Revenue | % profit after all expenses |
| Inventory Turnover | COGS / Average Inventory | How many times inventory sold |
| Revenue Growth | (This Month - Last Month) / Last Month | % month-over-month growth |
Common Month-End Issues & Fixes
- Unmatched bank transactions: Check for timing delays (2-3 days for ACH)
- Inventory variance: Check for FBA shipments in transit (not counted in balance yet)
- High platform fees: Review for chargebacks, returns, or new fee structures
- Profit drop: Compare to prior year or industry averages
- Large refunds: Verify customer return rate is normal
Tips for Staying Under 90 Minutes
- Do reconciliation same day as bank statement available (usually 1st of month)
- Use QB/Xero's mobile app to record transactions in real-time (not monthly backlog)
- Set recurring calendar reminder on 3rd of month for close
- Keep checklist printed or bookmarked for quick reference
- Use reports saved from previous months as templates
- Batch similar transactions (e.g., all Amazon fees together)
Summary: 90-Minute Close Workflow
Minute 1-15: Bank reconciliation
Minute 16-30: Platform payouts review
Minute 31-45: Inventory count & COGS update
Minute 46-60: Categorize & correct transactions
Minute 61-75: Generate reports & analyze metrics
Minute 76-90: Archive, document, and close