Month-end close for subscription businesses
15 Aug 2026 · 2 min read · By the Knock team
Key takeaways
- A checklist turns close from a scramble into a routine.
- Reconcile invoices, payments and deferred revenue every month.
- Automation shortens the close; it does not remove the review.
Recurring revenue makes closing the month more predictable, provided your records are clean. A consistent checklist keeps them that way.
Before the month ends
- Confirm all subscription changes are entered.
- Preview next cycle's invoices for anomalies.
- Chase overdue invoices.
The close checklist
- Confirm every invoice for the period was generated and sent.
- Match payments to invoices and clear unapplied cash.
- Review credit notes and refunds issued.
- Reconcile gateway payouts to bank deposits.
- Update deferred revenue and recognise revenue for the month.
- Review accounts receivable ageing.
- Check GST totals against the invoice register.
- Lock the period.
Reconciliation tips
Payout amounts rarely equal the sum of payments because of fees and timing. Reconcile in layers: invoices to payments, payments to payouts, payouts to bank.
Review the numbers
Compare MRR movements to your expectations. A large unexplained change usually points to a data issue, such as a subscription ended in error.
Document the process
Write the checklist down, assign owners and note the time each step takes. You will find the slow steps quickly.
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