Xero month-end checklist for US bookkeepers
By Arthur Teboul, DokuTrak · Published
In brief
A Xero month end checklist covers reconciling every bank and card account against the client’s statements, checking the aging and sales tax reports, posting manual journals, reviewing the trial balance, then setting a lock date. In Xero, only an administrator can set that lock date.
The checklist: Xero month-end checklist (US)
Use one copy per client. Send the first group to the client before month-end, then work down the Xero steps and tick each one.
- PDFPrint it or tick it off on screen.Free, no email
- WordEdit it and send it under your name.Free, with your email
- Excel trackerOne row per item, with a status column.Free, with your email
Documents to request from the client
- Bank statements for each account connected to XeroPDF for the full month; needed even when the feed works.
- Credit card statementsClosing balance used for the card reconciliation.
- Loan statementsPrincipal balance and interest charged.
- Payroll register from the payroll providerEvery pay date in the month.
- Receipts and bills for unreconciled linesSend the client the list of lines you cannot code.
Reconcile in Xero
- Check every bank feed has lines through month-endImport a statement file for accounts without a feed.
- Reconcile all statement lines in each bank account
- Run the Bank Reconciliation report and compare with the PDFStatement balance in Xero against the bank’s closing balance.
- Reconcile each card account to its statement
- Compare each loan balance with the lender statementManual journal for interest.
Reports and adjustments
- Run the Accounts Receivable Aging SummaryFlag invoices past ninety days for the client.
- Run the Accounts Payable Aging Summary and enter late bills
- Post the payroll journal and tie liabilities to the provider report
- Post accruals as manual journals set to reverse next month
- Post prepaid amortization and depreciationFrom the prepaid schedule or the fixed assets register.
- Run the Sales Tax Audit and compare the balance with the state return
- Update contractor totals for Form 1099-NECForm W-9 on file for each contractor.
Review and lock
- Run the Trial Balance and explain every suspense or clearing balance
- Compare the Profit and Loss with the prior month
- Set the lock date to the last day of the monthAccounting > Accounting settings > Financial settings > Lock Dates. Administrator role.
- Check for drafts dated in the locked monthDraft invoices, bills, expense claims and manual journals.
- File the statements and the Bank Reconciliation report
What Xero itself asks you to check
Xero’s US year-end article is a good spine for a monthly close too. It asks you to reconcile all bank accounts so they agree with the bank statements, and to use the Bank Reconciliation report to check the statement balance in Xero against the bank’s (Xero Central (US), Do a year end in Xero).
It then names the Accounts Receivable Aging Summary, the Accounts Payable Aging Summary, the sales tax return and balance, a Sales Tax Audit and a Trial Balance (Xero Central (US), Do a year end in Xero). Running the same set each month makes December an ordinary close.
| Xero report or screen | What it proves | Client document needed |
|---|---|---|
| Bank Reconciliation report | The Xero statement balance matches the bank | Bank statement PDF for the month |
| Card account reconciliation | Card balance matches the issuer | Credit card statement |
| Accounts Receivable Aging Summary | Unpaid invoices are real and current | Remittance details for unclear payments |
| Accounts Payable Aging Summary | Every bill owed is entered | Vendor bills and vendor statements |
| Sales Tax Audit and sales tax report | Tax on sales is coded and owed correctly | The return filed with the state |
| Trial Balance | Every ledger balance is explained | Loan statements, payroll reports, schedules |
Bank feeds are not statements
A bank feed is the stream of statement lines a bank sends into Xero. It can break, lag or miss an account, so check that each account shows lines through the last day of the month and import a statement file where it does not.
The IRS describes reconciling as making sure the bank statement and your books agree (IRS Publication 583, Starting a Business and Keeping Records). In Xero, that means the closing balance on the client’s PDF statement, not only the feed, must match the Bank Reconciliation report.
- Check each account on the dashboard has lines through month-end.
- Reconcile every statement line in the account.
- Run the Bank Reconciliation report for the last day of the month.
- Compare its statement balance with the PDF statement from the client.
- Repeat for each card account against the issuer’s statement.
Steps a US Xero file needs
Many Xero guides are written for other countries, such as Australia or the UK. A US file adds three checks that those guides skip.
First, payroll. When a US client pays staff through a separate payroll provider, post the payroll journal from that provider’s register and compare the liability accounts with its tax report.
Second, sales tax. Rates and filing schedules are set by each state, so compare Xero’s sales tax balance with the return actually filed for the period. Third, contractors: keep a running total by vendor for Form 1099-NEC, with a Form W-9 on file for each one.
Manual journals for accruals, prepaids and loans
A manual journal is Xero’s screen for any entry that does not come from a bank line, an invoice or a bill. Use it for adjustments such as accruals, prepaid amortization, depreciation and the interest part of loan payments.
Set accruals to reverse in the next month so the estimate leaves when the real bill is entered. For loans, compare the balance on the Balance Sheet with the lender statement and journal the difference to interest.
If the entries are new to you, month-end accruals walks through each one, and the month-end close checklist gives the task list outside any software.
Set the lock date, and know what it does not stop
A lock date is the date on or before which Xero refuses new or edited transactions. You need the administrator user role to set or change it (Xero Central (US), Set up or remove lock dates).
To set it, open the Accounting menu, choose Accounting settings, then Financial settings, enter the date under Lock Dates and save (Xero Central (US), Set up or remove lock dates). You can lock all user roles, or all roles except the administrator (Xero Central (US), Set up or remove lock dates).
The lock is not airtight. Users can still create draft invoices, bills and expense claims, submit them for approval, and save draft manual journals (Xero Central (US), Set up or remove lock dates). At the next close, look for drafts dated in the locked month.
Questions people ask
How do I set a lock date in Xero?
In the Accounting menu, choose Accounting settings, then Financial settings, enter the date under Lock Dates and click Save. Only a user with the administrator role can do it (Xero Central (US), Set up or remove lock dates).
Can users still work in a locked period in Xero?
They cannot add or edit transactions dated on or before the lock date, but they can still create draft invoices, bills, expense claims and manual journals (Xero Central (US), Set up or remove lock dates).
Do I need a year-end closing journal in Xero?
No. Xero says there is no roll up journal to bring the income statement back to zero, because its reports run from the start of the financial year you set (Xero Central (US), Do a year end in Xero).
Which Xero reports should I review before locking the month?
The Bank Reconciliation report, both aging summaries, the sales tax report, the Trial Balance and the Profit and Loss against the prior month.
Sources
- Xero Central (US), Set up or remove lock dates: Administrators set lock dates under Accounting settings, Financial settings; locks apply to all roles or all except administrators; drafts can still be created.
- Xero Central (US), Do a year end in Xero: Reconcile bank accounts with the Bank Reconciliation report, run both aging summaries, a Sales Tax Audit and a Trial Balance; no roll up journal is needed.
- IRS Publication 583, Starting a Business and Keeping Records: Reconciling means checking that the bank statement, the checkbook and the books agree.
About the author
Arthur Teboul (Founder, DokuTrak) is building DokuTrak after watching professionals lose hours chasing clients for documents over email. Arthur Teboul.
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How this page was made (methodology): it is built from the primary sources listed under Sources, and every rule and figure on it links to the source it comes from. Last updated October 25, 2026. Spotted an error or a rule that changed? Contact us.
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