If you run a small to mid-size professional services firm on Microsoft 365 and QuickBooks Online (QBO), you already own most of what you need to streamline month-end. This post outlines a practical 12-step checklist that turns the close into a reliable, decision-ready rhythm. It sits inside Client Accounting Services (CAS). It is not tax, not attest, and not fractional CFO. AP, AR, and payroll are optional add-on modules.
Stack focus: QBO for the GL; SharePoint, OneDrive, Teams approvals, Power Automate, Power BI, and Excel with Power Query for workflow, control, and reporting. Keep files and exports in your tenant.
At a glance: the 12 steps
- Pre-Close Policy and Cutoff
- Bank and Credit Card Reconciliations
- AR Cutoff and Cash Application Review (collections nudge is an add-on)
- AP Cutoff and Uninvoiced Accruals (AP approvals are an add-on)
- Payroll Accrual and Reconciliation (add-on)
- Fixed Assets and Depreciation
- Inventory or Project Cost Roll-Forward (projects for services; inventory if applicable)
- Intercompany, Loans, and Other Balance Sheet Recs
- Accruals and Deferrals (Standard JEs)
- Trial Balance Review and Variance Analysis
- Management Reporting Pack and KPI Update
- Controller Sign-Off, Archive, and Issue Log Review
Where automation fits (with QBO in mind)
- SharePoint + Lists: close checklist, exception log, JE library, AR follow-ups, AP intake queue.
- Excel + Power Query: standard transforms for QBO exports (TB, GL detail, AR/AP aging, bank/card CSVs, payroll registers, projects/WIP).
- Power Automate: due-date reminders, Teams approvals, exception routing, report publishing, file moves.
- Power BI: TB variances, KPI trends, on-time metrics, exception dashboards built from SharePoint and QBO exports.
The 12 steps in practice (QBO tips included)
1) Pre-Close Policy and Cutoff
Publish the close calendar and roles. Announce in Teams.
QBO tips: Set a Closing Date with a password; confirm accrual basis in Company Settings; save custom report sets for TB, AR/AP agings, and GL detail as of Day 0.
2) Bank and Credit Card Reconciliations
Pull statements, import to Excel with Power Query, tie to the GL, and flag reconciling items.
QBO tips: Clear the Bank Feed first using bank rules, then use Reconcile for each account. Attach statements and support to each reconciliation. Review old uncleared items.
3) AR Cutoff and Cash Application Review
Freeze AR as of Day 0. Match deposits, clear unapplied cash, validate credits, and produce an aging with 30/60/90 buckets.
QBO tips: Use AR Aging Summary and Unapplied Payments and Credits reports. Tie bank deposits to Receive Payment and Undeposited Funds.
Add-on: Collections nudge posts internal reminders against the aging.
4) AP Cutoff and Uninvoiced Accruals
Freeze AP as of Day 0. Record received-not-invoiced and prepare the accrual.
QBO tips: Use Unpaid Bills and Open Purchase Orders (if used). For services without POs, maintain a SharePoint accrual log with vendor, date, and support; post a single accrual JE in QBO.
Add-on: AP intake and Teams approvals with metadata and SLA alerts.
5) Payroll Accrual and Reconciliation (add-on)
Export the register, calculate earned-not-paid, post the JE, and reconcile liabilities.
QBO tips: Whether using QuickBooks Payroll or another provider, tie payroll liability accounts to provider balances each close.
6) Fixed Assets and Depreciation
Capture additions and disposals, run depreciation, post the JE, and reconcile to the GL.
QBO tips: Track the detailed asset schedule in Excel; use Attachments on related transactions; post depreciation as a recurring JE with clear references.
7) Inventory or Project Cost Roll-Forward
Roll beginning balances, adds, and usage or WIP. Investigate variances. Post COGS or project costs.
QBO tips (services): Use the Projects center for job costing, time, and billable expenses; export Project Profitability to support WIP logic.
QBO tips (inventory): Use Inventory Valuation Summary and Detail; ensure counts and adjustments are documented.
8) Intercompany, Loans, and Other Balance Sheet Recs
Prepare reconciliations, confirm intercompany, tie loans to statements and amortization schedules, and document reconciling items with target dates.
QBO tips: Use Due To/From accounts in each QBO company and exchange confirmations with the counterpart company file.
9) Accruals and Deferrals (Standard JEs)
Use a JE library, refresh amounts, validate reversals, post, and file the pack.
QBO tips: Set Recurring Transactions for routine accruals and deferrals. Require attachments and meaningful memo lines for audit trail.
10) Trial Balance Review and Variance Analysis
Load the TB into Power BI or Excel for period-over-period movements and ratios. Open or clear exceptions with owners and due dates.
QBO tips: Export TB as of Day 0; use GL Detail to drill significant movements; compare to prior month and prior year.
11) Management Reporting Pack and KPI Update
Refresh datasets, export the PDF pack, add short commentary, and deliver to the recipient list by SLA.
QBO tips: Keep a consistent mapping from QBO accounts to BI categories; store snapshots of TB and KPIs each month for trend views.
12) Controller Sign-Off, Archive, and Issue Log Review
Approve checklist items, archive files to a structured folder, and review the issue log. Capture steady-state improvements for next month.
QBO tips: After sign-off, extend the Closing Date to the new month and keep the password policy in place.
Five helpful Power Automate flows
- Close Checklist Tracker: build or roll the 12 items in a SharePoint list, set owners and due dates, send Teams reminders, and log timestamps.
- AP Intake and Approval (add-on): route vendor bills from an email or drop folder to Teams approvals with metadata and SLA alerts; save the approved PDF to AP folders.
- AR Collections Nudge (add-on): refresh the aging export daily, create tasks by bucket, log promises-to-pay in a SharePoint list, and post progress back to Teams.
- Exception Log Router: when an item is set to “Open,” assign owner and due date, post to Teams, and escalate on breach.
- Reporting Pack Publisher: after TB approval, refresh Power BI, export PDFs to SharePoint, notify recipients in Teams, and capture delivery time.
Note: These flows orchestrate files and tasks around QBO. Keep financial changes inside QBO with proper user roles and reviews.
Metrics and SLAs that keep the engine honest
- Close cycle time (days): Day 0 to final sign-off. Target ≤ 5.
- Reconciliations on time %: all cash and card recons by Day +1. Target ≥ 95%.
- Unresolved exceptions at Day +1: 0 critical, minimal total.
- AP first-pass yield (add-on): approved without rework. Target ≥ 90%.
- AR current %: percent of AR in the current bucket. Target ≥ 80%.
- Reporting pack on time: delivered by Day +4. Target 100%.
- Power BI refresh success %: datasets refresh clean. Target 100%.
- On-time approvals %: completed within SLA. Target ≥ 95%.
- Variance clearance time: average hours from open to resolved. Target ≤ 24.
- Steady-state carryovers: recurring exceptions repeating two or more months. Target 0.
A simple 30-day pilot
Scope: Pre-Close, Cash and Cards, AP Cutoff, Standard JEs, TB Review, Reporting, and Sign-Off.
Optional adds: AR Cutoff core and Fixed Assets if capacity allows.
Baseline to capture: recent close time, on-time recon rate, exceptions at Day +1, and reporting delivery time.
Exit criteria: close ≤ 5 days, ≥ 95% on-time recons, 0 critical exceptions at Day +1, and the pack delivered by Day +4 with brief commentary.
Want help turning this into your month-end engine on QBO?
We can map your process, stand up a SharePoint checklist and exception log, wire the flows, and publish a clean reporting pack off QBO exports inside your tenant. If you want a walk-through, schedule a free consult.