> ## Documentation Index
> Fetch the complete documentation index at: https://docs.timetracker.in/llms.txt
> Use this file to discover all available pages before exploring further.

# Month-end close

> The finance routine for the last week of the month: chase missing time, approve everything, close the period, raise invoices and reconcile payments.

Month-end close is five moves in a fixed order. Chase, approve, close, invoice, reconcile.

Do them out of order and you will invoice time that later changes. The whole point of closing a period is that the numbers stop moving.

<Info>
  **The example:** Northwind Studio closes March. Priya Raman (Project Manager) handles chase and approve. Daniel Okafor (Finance) handles invoice and reconcile. Maya Ellis (Owner) closes the period.
</Info>

## Before you start

<Warning>
  **Plan requirement.** Approvals, closing a period, invoicing, payments and exports are all **Pro**. On Free you can chase and record, but you cannot approve or bill. See [Free vs Pro](/billing/free-vs-pro).
</Warning>

## Who does what

| Step               | Who                         | Capability                       |
| ------------------ | --------------------------- | -------------------------------- |
| Chase missing time | Priya (PM)                  | `time.remind`, `time.viewOthers` |
| Approve timesheets | Priya (PM)                  | `time.approve`                   |
| Approve expenses   | Daniel (Finance)            | `expense.approve`                |
| Close the period   | Maya (Owner) or Tom (Admin) | `period.close`                   |
| Raise invoices     | Daniel (Finance)            | `invoice.manage`                 |
| Record payments    | Daniel (Finance)            | `payment.record`                 |
| Final report       | Priya or Daniel             | `report.view`, `report.export`   |

## The close

<Steps>
  <Step title="Priya chases the missing time">
    Start here, because everything downstream depends on the hours being complete.

    Open **Approvals** and look for weeks that were never submitted. Send a reminder to anyone who is behind.

    Compare **expected** hours against **tracked** hours per person. Someone on a 40 hour schedule who tracked 120 hours in a four week month is missing about 40 hours.

    → [Timesheet reminders](/timesheets/timesheet-reminders) · [Expected vs tracked hours](/timesheets/expected-vs-tracked-hours)

    <Tip>
      If a person is on leave or has left, an Admin can submit their week for them so the month is not held up by one absent person. See [Submit on behalf of someone](/timesheets/submit-on-behalf-of-someone).
    </Tip>
  </Step>

  <Step title="Priya approves every outstanding week">
    Work the approval queue until it is empty. Approve what is right. Reject what needs rework and give a reason.

    Small fixes are faster as an adjustment than a rejection – the entry is corrected in place and the change is recorded.

    → [Approve a timesheet](/approvals/approve-a-timesheet) · [Reject a timesheet](/approvals/reject-a-timesheet) · [Adjustments](/approvals/adjustments)

    <Warning>
      Only **approved billable** time can be invoiced. Anything still sitting in `submitted` will not appear on Daniel's invoice, and you will under-bill the client.
    </Warning>
  </Step>

  <Step title="Daniel approves the expenses">
    Expenses follow the same shape as time: `draft` → `submitted` → `approved`. Approved **billable** expenses can go onto a client invoice alongside the hours.

    → [Approve an expense](/expenses/approve-an-expense) · [Billable expenses](/expenses/billable-expenses) · [Expense statuses](/expenses/expense-statuses)
  </Step>

  <Step title="Maya closes the period">
    This is the step that makes the month final.

    Closing a period through a date locks every approved entry dated on or before that date. After that, nobody can create, edit or delete time in that range. The lock watermark only ever moves forward, so a later close can never accidentally unlock an earlier month.

    Close March through **31 March**.

    → [Close a period](/approvals/close-a-period)

    <Note>
      Only an Owner or Admin can close a period. It is deliberately a small group – closing is how you promise finance that the number will not move.
    </Note>

    <Warning>
      Close **after** approvals, never before. Time that was never approved is still locked out of the range by the close, so it can never be billed for that month without reopening.
    </Warning>
  </Step>

  <Step title="Daniel raises the invoices">
    For each client, create an invoice **from tracked time**. It pulls every approved billable entry that has not already been billed, plus any approved billable expenses.

    March at Northwind:

    | Client and project                 | Hours   | Billable value     |
    | ---------------------------------- | ------- | ------------------ |
    | Bluebird Coffee – Website Redesign | 62      | \$6,640            |
    | Harbor Logistics – Mobile App      | 120     | \$13,400           |
    | Bluebird Coffee – Monthly Retainer | 40      | Fixed retainer fee |
    | **Time invoiced this month**       | **182** | **\$20,040**       |

    Bluebird's Website Redesign is Sarah 40 hours at $100 ($4,000) plus Jonas 22 hours at $120 ($2,640). Harbor is Sarah 50 hours at $100 ($5,000) plus Jonas 70 hours at $120 ($8,400).

    Review each draft. Reword line descriptions if the client needs plainer language. Set the due date. Send.

    → [Invoice from tracked time](/invoicing/invoice-from-tracked-time) · [Edit a draft invoice](/invoicing/edit-a-draft-invoice) · [Send an invoice](/invoicing/send-an-invoice)

    <Tip>
      Invoice numbers are issued in order with no gaps, which is what most tax authorities expect. See [Invoice numbering](/invoicing/invoice-numbering).
    </Tip>
  </Step>

  <Step title="Daniel reconciles payments against the bank">
    Work through the invoice list and record every payment that arrived during the month.

    | Invoice status   | What it means                           |
    | ---------------- | --------------------------------------- |
    | `sent`           | Issued, nothing received yet.           |
    | `viewed`         | The client opened it.                   |
    | `partially_paid` | Some money arrived.                     |
    | `paid`           | Settled in full.                        |
    | `overdue`        | Past the due date, still unpaid.        |
    | `void`           | Cancelled. It cannot be edited or paid. |

    → [Record a payment](/invoicing/record-a-payment) · [Invoice statuses](/invoicing/invoice-statuses) · [Void an invoice](/invoicing/void-an-invoice)

    <Warning>
      Do not delete an invoice you sent by mistake. **Void** it. A voided invoice keeps its number and its history, which is what your accountant needs.
    </Warning>
  </Step>

  <Step title="Priya reviews the month">
    Build one report for the month and read it before you start the next one.

    The four numbers worth reading every time:

    | Number                    | What it tells you                             |
    | ------------------------- | --------------------------------------------- |
    | Hours tracked vs expected | Whether people are recording their real week. |
    | Billable percentage       | How much of your capacity is earning.         |
    | Margin per project        | Which clients are actually profitable.        |
    | Budget burn per project   | Which jobs will run out of money.             |

    Save the report once and it reruns next month. You can also have it emailed to you automatically.

    → [Build a report](/reports/build-a-report) · [Saved reports](/reports/saved-reports) · [Schedule a report](/reports/schedule-a-report)
  </Step>
</Steps>

## A close checklist you can copy

| Done | Step                                               | Owner  |
| ---- | -------------------------------------------------- | ------ |
| ☐    | Every week submitted                               | Priya  |
| ☐    | Every submitted week approved or rejected          | Priya  |
| ☐    | Every billable expense approved                    | Daniel |
| ☐    | Period closed through the last day of the month    | Maya   |
| ☐    | Invoice raised for every client with billable time | Daniel |
| ☐    | Every invoice sent                                 | Daniel |
| ☐    | Payments recorded against the bank                 | Daniel |
| ☐    | Overdue invoices chased                            | Daniel |
| ☐    | Month report reviewed                              | Priya  |

## Common questions

<AccordionGroup>
  <Accordion title="What exactly does closing a period do?">
    It locks every approved time entry dated on or before the date you choose, and it stops anyone creating, editing or deleting time in that range. It is how you guarantee the month's numbers will not change after you have billed them. See [Close a period](/approvals/close-a-period).
  </Accordion>

  <Accordion title="Someone found missing hours after we closed. What now?">
    An Owner or Admin has to reopen the period, or adjust the entries as an admin. Then re-close. If the invoice has already gone out, add the extra hours to next month's invoice rather than reissuing. See [Reopen an approval](/approvals/reopen-an-approval).
  </Accordion>

  <Accordion title="Can I close a period without approving everything first?">
    You can, but you should not. The close locks the date range, so unapproved time in that range is stuck and cannot be billed for the month. Approve first, always.
  </Accordion>

  <Accordion title="Do I have to close every month?">
    No. Closing is optional. It is worth doing if your hours feed invoices or payroll, because it is the only thing that stops a number changing after you relied on it.
  </Accordion>

  <Accordion title="A client pays in a different currency. How does that work?">
    An invoice carries its own currency, and you can set the exchange rate used. See [Taxes and currency](/invoicing/taxes-and-currency) and [Currencies and exchange rates](/rates/currencies-and-exchange-rates).
  </Accordion>
</AccordionGroup>

## Troubleshooting

| Problem                                        | Fix                                                                                                      |
| ---------------------------------------------- | -------------------------------------------------------------------------------------------------------- |
| Invoice draft is short of hours you expected   | Some time is still `submitted`, not approved – see [Approve a timesheet](/approvals/approve-a-timesheet) |
| Time in a closed month cannot be edited        | That is the lock working – see [Close a period](/approvals/close-a-period)                               |
| An invoice will not send                       | See [Invoice problems](/troubleshooting/invoice-problems)                                                |
| A report shows different totals to the invoice | Check the date range and the billable filter – see [Report problems](/troubleshooting/report-problems)   |

## Related guides

<CardGroup cols={2}>
  <Card title="Weekly timesheet routine" icon="calendar-check" href="/guides/weekly-timesheet-routine">
    Do this weekly and close takes an hour.
  </Card>

  <Card title="Quote to invoice" icon="file-invoice-dollar" href="/guides/quote-to-invoice">
    When the bill is a fixed quote, not hours.
  </Card>

  <Card title="Run a monthly retainer" icon="repeat" href="/guides/run-a-monthly-retainer">
    Closing a month with a recurring budget.
  </Card>

  <Card title="Export hours for payroll" icon="file-export" href="/guides/export-hours-for-payroll">
    The other thing you do at month end.
  </Card>

  <Card title="Monitor project profitability" icon="chart-line" href="/guides/monitor-project-profitability">
    Read the month before you plan the next one.
  </Card>
</CardGroup>