How close package works
A close package typically includes bank and credit card reconciliations, fixed asset and payroll schedules, accrual and prepaid workings, and a checklist showing who reviewed and approved each item before the period was finalized. Building it as the close happens, rather than reconstructing it after the fact, keeps the supporting evidence tied directly to the numbers that end up on the financial statements.
A complete close package makes it possible for someone outside the day-to-day bookkeeping, an owner, a lender or an auditor, to see exactly how each balance on the financial statements was arrived at. It also speeds up the next period's close considerably, since prior schedules carry forward as a starting point rather than being rebuilt from scratch.
Example
At month end, a business assembles its close package: a bank reconciliation showing the ending cash balance ties to the statement, a fixed asset schedule showing $2,400 in depreciation posted, an accrual workpaper for $6,000 in unbilled expenses, and a sign-off log showing the controller reviewed each item on the third business day. The package is filed alongside that month's financial statements for future reference.
Close Package in QuickBooks Online vs Xero
Not software-specific. QuickBooks Online and Xero hold the underlying transactions and reports, but the close package itself is usually assembled and tracked in a checklist or close-management tool such as Karbon layered on top of the accounting software.
Common mistakes
- A close package is assembled weeks after the period closes instead of as the close happens, losing the direct link between the numbers and their supporting evidence.
- Sign-offs are skipped under time pressure, so nobody outside day-to-day bookkeeping actually confirmed each reconciliation or schedule before the books were finalized.
- Prior period schedules are rebuilt from scratch each month instead of carried forward, wasting time and risking small inconsistencies between periods.
Why it matters
A close package is the evidence behind the numbers, so a missing or incomplete one leaves an owner, lender or auditor unable to verify how a balance on the financial statements was actually reached. For a business seeking financing or preparing for an audit, a complete close package speeds up review and builds confidence in the reported figures. Building it as the close happens, not after, keeps that evidence reliable and current.
Related terms
How LedgerBPO handles close package
We build a complete close package every period, reconciliations, schedules and a sign-off log included, using our CloseTrack checklist so every balance on your financial statements is documented and easily reviewable by anyone who needs to check it.