What Does the Month-End Close Process Look Like When You Work with James Moore’s CPAs?

There’s nothing like wrapping up a project, meeting demand and completing the work on time. But when the numbers behind it all don’t tie out at the end of the month, things get complicated fast. That’s why a smooth, accurate and timely month‑end close isn’t just about neat books. It’s about making informed decisions, maintaining lender trust and avoiding tax or audit trouble that can sneak up when you least expect it.

Construction companies often face unique accounting challenges. You’re tracking direct and indirect labor, handling complex job costing and managing equipment depreciation, vendor terms and customer credit limits. That’s a lot of moving parts, and if your financials are even a few weeks behind, your decisions are based on outdated information.

While we don’t have a specific statistic tying mismanagement directly to month‑end close delays, reputable sources like NFIB consistently highlight that inflation, labor quality, prevailing uncertainty and taxes rank among the top challenges for small business operators. Those pressures only compound when your month‑end process is inefficient and unreliable.

At James Moore, we work with growing construction companies to make sure that doesn’t happen. We believe you should never be surprised by your own numbers. Our CPAs help you stay ahead of tax issues, cost overruns, compliance headaches and cash flow shortfalls by building a month‑end close process that gives you visibility and control.

Your month-end close, the James Moore way

We’re not just accountants. We’re advisors who work side by side with your team to build an efficient, structured close that works for your industry and your schedule. Our approach is tailored, hands-on and built around the real needs of construction companies, not just theoretical best practices.

First, we start by understanding the way your business runs. Whether you’re managing residential projects, commercial builds or infrastructure development, the way your costs flow through your general ledger matters. We help you map those flows, clean up outdated processes and apply automation where it makes sense. The result? A close that’s faster, cleaner and more insightful.

From the first month we work with a client, we lay out a checklist that includes tasks like:

• Verifying that all bank and credit card transactions are reconciled
• Reviewing accounts payable and receivable aging for unaddressed balances
• Ensuring accurate job cost coding to the correct work orders or cost centers
• Creating or updating your work in progress (WIP) schedule for the month
• Reviewing allocations for overhead, depreciation and accrued liabilities

We don’t just close your books; we help you understand them. That means walking you through variances, identifying cost issues and showing where your balance sheet might need cleanup or reclassification. If there are new lease obligations, equipment purchases or unusual entries, we make sure they’re properly recorded and backed up with documentation.

We also build in time for questions and education, because you deserve to understand your numbers, not just get a report. And if your company is already working with our Business Advisory team, we make sure your month-end data feeds into broader planning and strategy.

Reconciling bank activity to start clean every month

Every strong month-end close begins with one basic question: Do your books reflect reality? That’s why monthly bank reconciliations are the non-negotiable foundation of your close process. They’re your best tool for catching errors, preventing fraud and understanding your true cash position.

At James Moore, we start by ensuring all checking, savings and credit card accounts are fully reconciled to your general ledger. We look for unposted transactions, timing discrepancies, and duplicate entries that can throw off your financials. When something looks off, we talk with your team to understand why it happened and how to fix it.

These reconciliations give us insight into your working capital, vendor relationships and internal controls. If we spot recurring issues like frequent reversals, delayed deposits or uncleared checks, we’ll bring them to your attention so you can prevent bigger problems down the road.

We also tie in credit card activity, lines of credit and merchant accounts to ensure every cash-related item is accounted for. That means your income statement and balance sheet reflect the business you actually ran last month, not a version distorted by timing gaps or manual errors.

Tracking job costs accurately across departments and work orders

In construction, job costing is where things often go sideways. And when it does, the impact is bigger than a few accounting adjustments. Inaccurate job costing leads to flawed pricing, lost margin and misguided production decisions. That’s why we put such a heavy focus on making sure job costs are coded correctly every month.

We start by verifying that labor, materials, subcontractor costs and overhead are matched to the right jobs or work orders. For construction companies using job-based costing systems, this includes reviewing how costs are being pulled from payroll systems, inventory modules and purchasing workflows. If we see misclassifications or inconsistencies, we help you get them sorted so your process runs cleaner moving forward.

Tracking costs carefully helps you reconcile the past and empowers smarter decisions for quoting new projects, pricing products competitively and understanding which projects or types of work truly drive profitability. The method you use to recognize and allocate costs matters for both your internal strategy and compliance and reporting.

For instance, the IRS requires construction to use full absorption costing (also known as full costing) when calculating inventoriable costs for both internal and external reporting. That means all direct costs (like materials and labor) and indirect costs (such as overhead) must be allocated to inventory appropriately in your records.

When cost data isn’t accurate, or when allocation methods aren’t consistent, you risk mispricing, margin erosion and discrepancies that could trigger tax or audit complications. When everything is coded and allocated correctly, your pricing becomes stronger, your financial transparency improves, and you maintain readiness for both tax evaluation and decision-making.

Our CPAs regularly work with construction companies using ERP platforms like Procore, QuickBooks, Sage 300 and others to ensure job cost data is flowing accurately through the system. If your current software isn’t giving you the visibility you need, we can also help you identify and implement solutions that support clearer cost tracking and stronger month-end reporting.

Managing payables, receivables and working capital health

Month-end close provides important insight. And nowhere is that more important than in your accounts payable and accounts receivable processes. Construction companies who overlook these key areas often face cash flow crunches, missed opportunities for early payment discounts or excessive financing costs.

At James Moore, we start each month by reviewing the accounts receivable aging report with you. We flag old balances, disputed invoices and any signs of client payment issues. If a client regularly slips past payment terms, we’ll help you set up better payment controls or rethink your credit policies. You’ve already done the work and delivered the project; you should be able to count on that revenue being collected.

On the accounts payable side, we review aging reports to help you spot duplicates, unrecorded liabilities or upcoming large payments that could impact cash flow. We also ensure payables are coded properly by expense type, vendor or project, so you know exactly where your money is going and whether those costs are supporting profitability.

This is also the time we help you track your working capital cycle. For example, are receivables being collected faster or slower than last quarter? Are your vendor terms consistent with your operating needs? These aren’t just accounting questions. They affect your production timelines, subcontractor relationships and financing options.

By the end of each month, our clients have a clear view of their current liabilities, upcoming cash inflows and any problem accounts that need follow-up. That kind of visibility helps you sleep better and make better decisions. For more on how we help clients improve financial performance, visit our Business Advisory page.

WIP schedules, over/under billings and allocation of overhead

Manufacturing firms working on complex jobs or long production cycles need accurate WIP schedules to measure progress and profitability. But many companies treat WIP as a year-end task instead of a month-end tool. That’s a costly oversight.

We help our clients prepare and update their WIP schedules every month. This includes recording over or under billings, verifying percent complete and making sure revenue and cost recognition are aligned. With this in place, you gain a real-time view of project profitability, not just a backward-looking snapshot.

Over or under billings, when left unrecorded, can distort your financials. For instance, if you’ve invoiced ahead of your actual project progress, you may be overstating revenue. If you’ve under-billed for a job you’ve nearly completed, your income statement won’t reflect the real value of your work. We make the necessary adjustments monthly, so your statements remain useful and defensible.

Another key part of our month-end process is allocating overhead costs. This can include everything from equipment maintenance to utilities. When overhead isn’t allocated properly, your project costing becomes unreliable and your margins misleading. Our CPAs help you identify fair and consistent allocation bases (whether by labor hours, machine time or production volume), so indirect costs are applied in a way that supports accurate pricing and profitability analysis.

For additional technical guidance, the IRS provides rules on inventory costing under Section 1.471-11 of the Internal Revenue Code, which outlines how construction companies should treat overhead and other indirect costs.

Assets, depreciation and debt reconciliation that matches reality

Construction companies often operate in asset-heavy environments. From heavy machinery and construction vehicles to office equipment and leasehold improvements, your capital investments carry significant weight on your balance sheet. That’s why the month-end close process must include a deliberate review of your fixed asset schedules and related depreciation.

At James Moore, we help our clients maintain a fixed asset register that ties out with your general ledger and includes key details like acquisition date, cost basis, depreciation method and useful life. We ensure new asset purchases are recorded promptly and accurately, and that disposals or write-offs are reflected without delay. This helps prevent overstatement of asset values and ensures depreciation is calculated properly throughout the year, not just at year-end.

We also record monthly depreciation entries using methods aligned with tax and financial reporting requirements. This allows your monthly financials to reflect the true cost of equipment usage and helps avoid surprises when it is time to file your return. If you’re using accelerated depreciation methods for tax purposes, we’ll track those adjustments separately to support both book and tax accuracy.

Debt and lease obligations are also reviewed monthly. Our CPAs verify that principal and interest payments match your amortization schedules and that balances tie to lender statements. We also make sure that new leases are recorded in compliance with current accounting standards and categorized properly as short- or long-term liabilities. This level of detail keeps your financials clean, improves lender communication and ensures your ratios stay accurate.

When construction companies have accurate asset and debt records, their decision-making becomes stronger. Whether you’re planning a large equipment purchase, evaluating lease versus buy scenarios, or preparing for a bank covenant review, you need financials that reflect reality.

Month-end close with James Moore: accurate, actionable, always on time

The month-end close should not be a stressful scramble. When you work with James Moore, you get a process that is structured, collaborative and tailored to the complexities of your construction business. We bring the same level of care to your internal records as we do to tax returns, audits and advisory engagements, because we know your success depends on reliable numbers.

From reconciling accounts and tracking costs to recording depreciation and updating WIP schedules, every part of our close process is built to provide clear, actionable insights. Our goal isn’t just to close your books. It’s to open up a better understanding of how your business is performing and where it can go next.

If your current close process is slow, unclear or inconsistent, let’s talk. Our Construction and Business Tax teams are here to help you build a better financial foundation for your company’s growth. Contact a James Moore professional today to find out how we can support your month-end process and help your manufacturing operation thrive.

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a James Moore professional. James Moore will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.