Monthly Close Process Best Practices: Building Reliable Financials for Spokane Businesses

Every small business owner wants financial clarity. But clarity doesn’t come from scrambling at year-end or glancing at a bank balance. It comes from discipline — specifically, from a monthly close process that keeps books current, accurate, and decision-ready.

At Shepherd Financial Group, we treat the monthly close as the backbone of bookkeeping. Without it, financial statements are incomplete, compliance risk grows, and owners lose the ability to make proactive decisions. With it, businesses gain visibility, control, and confidence.

Why Monthly Accounting Matters

Monthly closes aren’t for the passive business owner. They’re for leaders intent on financial success and committed to a clear vision for the future. By reviewing financials consistently, owners build the discipline that creates stability, fuels growth, and prepares for opportunities.

Some businesses wait until year-end to reconcile their books. The problem? By then, it’s too late to correct course. Opportunities are missed, risks are hidden, and decisions are based on guesswork.

Monthly closes solve that problem. They give owners:

• Timely insights – not 12 months late, but every 30 days.
• Loan-ready financials – banks won’t wait six months for accurate reports.
• Tax readiness – no surprises come April.
• Accountability – regular reviews catch errors before they compound.

In Spokane and North Idaho, we’ve seen businesses secure financing or avoid tax penalties simply because their books were current and trustworthy.

The Financial System Behind the Close

One of the most overlooked aspects of bookkeeping is the system itself. When a business partners with Shepherd Financial Group, they aren’t just outsourcing tasks — they’re adopting a financial infrastructure.

That infrastructure includes:

• Documented processes and procedures – Every account, transaction, and adjustment flows through a standardized framework.
• Controls and consistency – Mapping, reconciliations, and reporting follow the same rigor month after month.
• Scalable design – A system that works for a $500K business but can grow to support $10M+ enterprise.
• Reliable reporting outputs – Statements that banks, buyers, and owners alike can trust.
• Technology tools – QuickBooks Online, ADP/Gusto, Bill.com, BILL Spend & Expense (formerly Divvy), and Wholesail for Accounts Receivable. Together, they create trustworthy, scalable systems that allow business owners to grow with confidence.

Business owners often don’t realize it at first, but what they are truly gaining through the monthly close is not just reconciled accounts — it’s a deployed financial system that undergirds their business. Without that infrastructure, financials collapse under pressure. With it, they hold up during growth, financing, and transitions.

How We Structure the Close

At Shepherd, we don’t close books on a fixed calendar date. Instead, we set deadlines based on the client’s size, complexity, and pricing tier:

• High-priority, advisory-level clients – financials delivered by the 5th–10th of the month. These clients typically receive monthly review meetings as part of their engagement.
• Standard clients (the majority of our groups) – financials delivered between the 15th and 20th of the month.
• Compliance-only, lower-budget clients – financials finalized closer to month-end. These accounts receive accurate reports for compliance purposes but typically have little interest in review meetings.

This tiered approach balances urgency, budget, and client needs. Every client gets accurate books, but those who prioritize speed and insight into decision-making invest in the higher-level cadence.

Best Practices for an Effective Close

Through our work, we’ve developed best practices that turn the close from a dreaded chore into a strategic advantage:

1. Deploy Infrastructure, Not Just Entries – The real value of monthly close is the system it builds: consistency, reliability, and scalability.
2. Set a Consistent Rhythm – Clients expecting reports by the 5th–10th, 15th–20th, or end of month learn to build their own decision-making rhythms around financials.
3. Reconcile Every Account – Bank accounts, credit cards, and loans all need to tie out. Even small discrepancies snowball.
4. Standardize Payroll Mapping – Use clear categories for wages, taxes, benefits, and retirement so labor costs are accurate.
5. Review Revenue Recognition – For accrual-basis businesses and those with Point of Sale systems, ensure revenue is booked in the correct period.
6. Document Adjustments – Any journal entries or corrections are noted for transparency.
7. Deliver Financial Statements – A complete set of management reports including Profit & Loss, Balance Sheet, and Statement of Cash Flows follow each close.
8. Calculate Excise & Sales Tax – Especially in Washington and Idaho, we spend significant time reviewing invoices for businesses that collect and remit retail sales tax. Errors here create serious risk.

Owner Reviews and Advisory Meetings

Not every close is paired with an owner review meeting. The distinction comes down to engagement level:

• Large and advisory-level clients: Monthly meetings are often inlcuded in pricing. These sessions function as built-in advisory, where we explain financials, answer questions, and coach on decision-making.
• All clients after onboarding: Receive a free baseline coaching session where we teach how to read financial statements, explain management reports, and make any necessary customizations.
• Standard or compliance-only clients: Typically receive financial statements only. If they want deeper review, they can schedule paid advisory sessions similar to our cash flow management model.

This structure ensures that every client gets education upfront, while those who value ongoing advisory support can opt into it as part of their pricing tier.

Stewardship Through Discipline

The monthly close isn’t just accounting procedure. It’s stewardship in action. By reviewing and reconciling faithfully, owners demonstrate diligence with the resources entrusted to them.

Scripture reminds us that “it is required in stewards, that a man be found faithful” (1 Corinthians 4:2 KJV). In business, that faithfulness looks like disciplined processes that preserve integrity and prepare for the future.

And part of that faithfulness is recognizing the value of infrastructure. A well-designed financial system is more than compliance — it’s a tool of stewardship that preserves, protects, and prospers what has been entrusted to you.

Closing Thought

Financial clarity doesn’t happen by accident. It’s built one month at a time through consistent, disciplined closing practices. Spokane businesses that embrace the monthly close gain not just accurate reports, but a foundation of financial infrastructure that can support growth, financing, and peace of mind.