[See what's new in the

Kick Changelog](/content/changelog/index.html)

For the complete documentation index, see [llms.txt](https://docs.kick.co/llms.txt). This page is also available as [Markdown](https://docs.kick.co/accountants/best-practice-guides/close-guide.md).

## Before You Start

Before beginning any close, confirm the following:

- **Previous period is** [**locked**](https://docs.kick.co/accountants/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://docs.kick.co/accountants/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://docs.kick.co/accountants/managing-clients/roles-and-permissions) **.** We recommend adding clients as Members so locked periods are view-only for them.

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## Step 1: Confirm Transaction Completeness

Start with [reconciliation](https://docs.kick.co/accountants/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://docs.kick.co/accountants/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.

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## Step 2: Review and Resolve Transfers

Before categorizing, check that [transfers](https://docs.kick.co/accountants/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://docs.kick.co/accountants/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://docs.kick.co/accountants/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://docs.kick.co/accountants/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

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## Step 3: Transaction Review

Kick's tiered [categorization](https://docs.kick.co/accountants/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://docs.kick.co/accountants/bookkeeping-workflows/transactions) page, toggle to the General Ledger Review [View](https://docs.kick.co/accountants/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://docs.kick.co/accountants/reference/keyboard-shortcuts)) to update [categorization](https://docs.kick.co/accountants/bookkeeping-workflows/categorization), [counterparties](https://docs.kick.co/accountants/bookkeeping-workflows/counterparties), [classes](https://docs.kick.co/accountants/bookkeeping-workflows/classes), etc.

3. 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.

4. For recurring transactions, ensure your updates are always applied consistently by creating [Rules](https://docs.kick.co/accountants/bookkeeping-workflows/rules).

To review **uncategorized transactions** →

1. Open the [Transactions](https://docs.kick.co/accountants/bookkeeping-workflows/transactions) page, toggle to the General Ledger Review [View](https://docs.kick.co/accountants/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://docs.kick.co/accountants/close-workflows/tasks) from the transactions to request more info.

To review **material transactions** →

1. Open the [Transactions](https://docs.kick.co/accountants/bookkeeping-workflows/transactions) page, toggle to the General Ledger Review [View](https://docs.kick.co/accountants/collaboration/views), filter for the period you are reviewing, click the Amount column to sort largest cash in → largest cash out.

2. Click Amount again to reverse the sorting.

3. Alternatively, use the Amount filter to review transactions above a materiality threshold.

4. Confirm categorization, taking particular care to review Contributions, Distributions, Transfers, and Revenue.

To review transactions **without a counterparty** →

1. Open the [Transactions](https://docs.kick.co/accountants/bookkeeping-workflows/transactions) page, toggle to the General Ledger Review [View](https://docs.kick.co/accountants/collaboration/views), filter for the period you are reviewing, filter for Counterparty → No counterparty.

2. Add additional filters for scenarios where all transactions require a counterparty (e.g. General Ledger = Contract Labor).

3. Assign a [counterparty](https://docs.kick.co/accountants/bookkeeping-workflows/counterparties) to each transaction, making bulk updates to selected transactions when possible.

To review **personal accounts** →

1. Open the [Transactions](https://docs.kick.co/accountants/bookkeeping-workflows/transactions) page, toggle to the General Ledger Review [View](https://docs.kick.co/accountants/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.

**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.

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## 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.

**What to do when using Gusto**  
Follow the [Payroll reconciliation guide](https://docs.kick.co/accountants/close-workflows/payroll) to reconcile the Gusto payroll liability account, including net pay, taxes, benefits, and contractor payments.

- 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://docs.kick.co/accountants/close-workflows/journal-entries), as needed

- For [Gusto-integrated](https://docs.kick.co/accountants/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://docs.kick.co/accountants/close-workflows/journal-entries/create-recurring-entries).

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## Step 5: Loan Reconciliation

[Loans](https://docs.kick.co/accountants/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://docs.kick.co/accountants/bookkeeping-workflows/splits) are recorded correctly on each payment

- Check that loan amortization schedules are being followed — set up [recurring entries](https://docs.kick.co/accountants/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.

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## 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://docs.kick.co/accountants/close-workflows/journal-entries/create-recurring-entries) so they post automatically. See [Journal entries](https://docs.kick.co/accountants/close-workflows/journal-entries) for full details on creating and managing JEs.

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## 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://docs.kick.co/accountants/reports/balance-sheet) includes [clearing accounts](https://docs.kick.co/accountants/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.

**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://docs.kick.co/accountants/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://docs.kick.co/accountants/bookkeeping-workflows/classes), run the P&L by class to confirm nothing is misallocated

- Export the [Balance Sheet](https://docs.kick.co/accountants/reports/balance-sheet) or [Profit & Loss](https://docs.kick.co/accountants/reports/profit-and-loss) if you need to review offline or share with a third party before locking

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## Step 8: Lock the Period

**What to do:**

- Navigate to your profile icon → [Locks](https://docs.kick.co/accountants/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.

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## Step 9: Share with Client

Deliver the financial package to the client.

**What to do:**

- Create a [Task](https://docs.kick.co/accountants/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://docs.kick.co/accountants/reports/balance-sheet) and [Profit & Loss](https://docs.kick.co/accountants/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://docs.kick.co/accountants/reports/tax-package) can be downloaded from the Accounting page to bundle all financials into a single download.