Every contractor can benefit from a systematic, timely monthly closeout process – regardless of company size or accounting software used. In order to produce a foundation for accurate financial reports for forecasting and decision-making, carefully review each of the following areas:

Cash
It all starts with cash. Start the month-end close by reconciling each account from the bank statement to the general ledger. Also, record any bank interest income earned for the period. 

Accounts Receivable (A/R) 
Make certain that all customer receivable invoices for the month have been posted. Review A/R aging for collectability issues – typically 60 days or more. Verify that payments received have been applied against the correct balance.