# Close Guide ## Before You Start Before beginning any close, confirm the following: * **Previous period is** [**locked**](https://accountants.kick.co/close-workflows/locks)**.** This prevents backdated entries from contaminating a period you've already closed. If you haven't locked the prior month yet, do that first. * **All accounts are connected and syncing.** Check the Accounts tab for disconnection warnings. If an account dropped, [reconnect](https://accountants.kick.co/setting-up/integrations/manage-integrations) it or request statements from the client. * **Prior period retained earnings agree with the last financial package.** If they don't, something was posted to a closed period — investigate before proceeding. * **Client has been invited with** [**correct permissions**](https://accountants.kick.co/managing-clients/roles-and-permissions)**.** We recommend adding clients as Members so locked periods are view-only for them. *** ## Step 1: Confirm Transaction Completeness Start with [reconciliation](https://accountants.kick.co/close-workflows/reconciliation) — not categorization. The goal is to answer one question: do we have every transaction the bank has? In Kick, every transaction imported is immediately posted to the ledger — reconciliation here is about confirming completeness, not posting. **What to do:** * Navigate to Accounting → Reconciliation * Upload statements for the period if they haven't synced automatically through [Plaid](https://accountants.kick.co/setting-up/integrations/connect-accounts) * Follow the steps in the reconciliation article for each bank and credit card account * Confirm opening and closing balances match the bank statements * Resolve any exceptions (missing transactions, date discrepancies, duplicates) **Why Kick does it this way:** Reconciling first ensures data completeness before you start reviewing or categorizing. This prevents the common problem of discovering missing transactions halfway through a close. *** ## Step 2: Review and Resolve Transfers Before categorizing, check that [transfers](https://accountants.kick.co/bookkeeping-workflows/transfers) between accounts are properly matched. Unmatched or miscategorized transfers can show up as non-zero balances in your clearing accounts on the [Balance Sheet](https://accountants.kick.co/reports/balance-sheet). **What to do:** * Review the Balance Sheet for non-zero clearing account balances: * Bank Transfer Clearing * Payment Transfer Clearing * Credit Card Clearing * [Match any unmatched transfers](https://accountants.kick.co/bookkeeping-workflows/transfers) manually, or investigate why they're unmatched (the other account may not be connected) * For recurring transfers, set up a [Transfer Rule](https://accountants.kick.co/bookkeeping-workflows/rules) so Kick handles the matching automatically going forward **Ideally, clearing accounts are at $0 after matching.** A non-zero balance is always worth investigating, but it's not always an error. **Likely needs fixing:** * A transaction has been **miscategorized** (e.g., a transfer coded as an expense) * A transfer didn't clear because the **other account is disconnected or not yet connected** in Kick **May be expected:** * The offsetting transaction **clears after the period ends** — the balance will resolve in a future period, but confirm that's expected *** ## Step 3: Transaction Review Kick's tiered [categorization](https://accountants.kick.co/bookkeeping-workflows/categorization) system auto-categorizes \~97% of transactions on first pass. Your job is to review the exceptions — the transactions where the AI wasn't confident enough to make a call. **What to do:** To review **similar transactions** → 1. Open the [Transactions](https://accountants.kick.co/bookkeeping-workflows/transactions) page, toggle to the General Ledger Review [View](https://accountants.kick.co/collaboration/views), filter for the period you are reviewing, sort Bank description alphabetically by clicking on the column header. 2. Select transactions (see [Keyboard shortcuts](https://accountants.kick.co/reference/keyboard-shortcuts)) to update [categorization](https://accountants.kick.co/bookkeeping-workflows/categorization), [counterparties](https://accountants.kick.co/bookkeeping-workflows/counterparties), [classes](https://accountants.kick.co/bookkeeping-workflows/classes), etc. 1. Kick will ask you if you'd like to make changes to similar transactions. Click **Review** when you see this pop-up and **Assign** to confirm the bulk update. Kick will learn from these changes over time. 3. For recurring transactions, ensure your updates are always applied consistently by creating [Rules](https://accountants.kick.co/bookkeeping-workflows/rules). To review **uncategorized transactions** → 1. Open the [Transactions](https://accountants.kick.co/bookkeeping-workflows/transactions) page, toggle to the General Ledger Review [View](https://accountants.kick.co/collaboration/views), filter for the period you are reviewing, filter for Category → Uncategorized. 2. Assign categories to transactions that do not need to be confirmed with your client. 3. If you need client input, generate a [Task](https://accountants.kick.co/close-workflows/tasks) from the transactions to request more info. To review **material transactions** → 1. Open the [Transactions](https://accountants.kick.co/bookkeeping-workflows/transactions) page, toggle to the General Ledger Review [View](https://accountants.kick.co/collaboration/views), filter for the period you are reviewing, click the Amount column to sort largest cash in → largest cash out. 1. Click Amount again to reverse the sorting. 2. Alternatively, use the Amount filter to review transactions above a materiality threshold. 3. Confirm categorization, taking particular care to review Contributions, Distributions, Transfers, and Revenue. To review transactions **without a counterparty** → 1. Open the [Transactions](https://accountants.kick.co/bookkeeping-workflows/transactions) page, toggle to the General Ledger Review [View](https://accountants.kick.co/collaboration/views), filter for the period you are reviewing, filter for Counterparty → No counterparty. 1. Add additional filters for scenarios where all transactions require a counterparty (e.g. General Ledger = Contract Labor). 2. Assign a [counterparty](https://accountants.kick.co/bookkeeping-workflows/counterparties) to each transaction, making bulk updates to selected transactions when possible. To review **personal accounts** → 1. Open the [Transactions](https://accountants.kick.co/bookkeeping-workflows/transactions) page, toggle to the General Ledger Review [View](https://accountants.kick.co/collaboration/views), filter for the period you are reviewing, filter for Entity → Personal. 2. Move business transactions that occurred in personal accounts to the relevant entity, and assign the appropriate category. 1. See [Personal to Business](https://accountants.kick.co/bookkeeping-workflows/personal-to-business) for additional guidance. {% hint style="info" %} **Key distinction:** In Kick, you work from the Transactions page — not the Profit & Loss. The Transactions page is your command center for categorization, rule creation, and bulk actions. {% endhint %} *** ## Step 4: Payroll Reconciliation If the client uses a payroll provider (Gusto, ADP, etc.), verify that payroll entries for the period are complete and match the provider's reports. {% hint style="info" %} **What to do when using Gusto** Follow the [Payroll reconciliation guide](https://accountants.kick.co/close-workflows/payroll) to reconcile the Gusto payroll liability account, including net pay, taxes, benefits, and contractor payments. {% endhint %} **What to do:** * Compare payroll-related transactions in Kick against the payroll provider's period summary * Confirm wages, taxes, employer contributions, and other deductions are recorded correctly for each period * Make adjusting [journal entries](https://accountants.kick.co/close-workflows/journal-entries), as needed * For [Gusto-integrated](https://accountants.kick.co/setting-up/integrations/gusto) clients, Kick automatically maps standard payroll accounts — confirm the mapping is correct This step is especially important at year-end when reconciling to the W-3, but a quick check each month prevents surprises. For recurring payroll adjustments, set them up as [recurring entries](https://accountants.kick.co/close-workflows/journal-entries/create-recurring-entries). *** ## Step 5: Loan Reconciliation [Loans](https://accountants.kick.co/close-workflows/loans) are common enough to warrant their own review. If the client has any outstanding loans, lines of credit, or financing arrangements, reconcile them separately. **What to do:** * Verify loan balances in Kick against lender statements for the period * Confirm principal and interest [splits](https://accountants.kick.co/bookkeeping-workflows/splits) are recorded correctly on each payment * Check that loan amortization schedules are being followed — set up [recurring entries](https://accountants.kick.co/close-workflows/journal-entries/create-recurring-entries) for monthly interest accruals if needed * For new loans originated during the period, confirm the proceeds and any associated fees are booked correctly * Reconcile any line-of-credit draws and repayments **Why this matters:** Loan balances directly affect the Balance Sheet. Catching discrepancies here prevents downstream issues when reviewing the full Balance Sheet. *** ## Step 6: Post Adjusting Journal Entries After the categorization review and Balance Sheet review are complete, post any period-end adjustments. **Common adjustments:** * Loan interest accruals * Prepaid expense amortization * Depreciation or amortization * Deferred revenue recognition * Receivable write-offs * Reclassifications For entries that repeat each period (depreciation, amortization), set them up as [recurring entries](https://accountants.kick.co/close-workflows/journal-entries/create-recurring-entries) so they post automatically. See [Journal entries](https://accountants.kick.co/close-workflows/journal-entries) for full details on creating and managing JEs. *** ## Step 7: Financial Statement Review **What to do:** * Navigate to Accounting → Balance Sheet * Confirm prior period retained earnings agree with what was reported in the last financial package. If they don't, something was posted to a closed period — investigate before proceeding * Scan for stale balances: prepaid amounts that should have been amortized, receivables that should have been written off, clearing accounts that should be at zero **Note:** Kick's [Balance Sheet](https://accountants.kick.co/reports/balance-sheet) includes [clearing accounts](https://accountants.kick.co/bookkeeping-workflows/transfers) (Bank Transfer Clearing, Payment Transfer Clearing, Credit Card Clearing). These should be at $0 after completing Step 2. A remaining balance isn't necessarily an error — it may indicate a transfer that clears in a future period, or an account that hasn't been connected yet. If a balance remains, make sure you can explain it before moving on. See Step 2 for the full diagnostic checklist. {% hint style="info" %} **Double-Check** At this point, the close is substantively done. But you're a meticulous accountant — so you're going to check it over one more time. **What to do:** * Review the [Profit & Loss](https://accountants.kick.co/reports/profit-and-loss) for the period — do revenue, expenses, and net income pass the smell test? * Review the Balance Sheet one more time — any stale items that require adjustment? * Check that clearing accounts are still at $0 (nothing snuck in during the adjustment phase) * If the client uses [classes](https://accountants.kick.co/bookkeeping-workflows/classes), run the P\&L by class to confirm nothing is misallocated * Export the [Balance Sheet](https://accountants.kick.co/reports/balance-sheet) or [Profit & Loss](https://accountants.kick.co/reports/profit-and-loss) if you need to review offline or share with a third party before locking {% endhint %} *** ## Step 8: Lock the Period **What to do:** * Navigate to your profile icon → [Locks](https://accountants.kick.co/close-workflows/locks) * Select the month and click Lock * Locking a month also locks all prior months Once locked, clients with Member permissions have view-only access to the period. Only firm team members and client Admins can unlock. *** ## Step 9: Share with Client Deliver the financial package to the client. **What to do:** * Create a [Task](https://accountants.kick.co/collaboration/tasks) with the period's financials attached (P\&L, Balance Sheet, and any notes). You can export financials in multiple formats directly from the [Balance Sheet](https://accountants.kick.co/reports/balance-sheet) and [Profit & Loss](https://accountants.kick.co/reports/profit-and-loss) report pages. * Alternatively, invite your client as a Member so they have view-only access to the Accounting tab for locked periods. Using a Task, instruct them to navigate to each report and filter for the closed period to complete their review. * For year-end, the Year-End [Tax Package](https://accountants.kick.co/reports/tax-package) can be downloaded from the Accounting page to bundle all financials into a single download.