Who it's for: the only finance person in a SaaS or tech company, or someone who does finance alongside another job.
What you'll get: a slimmed-down close you can run alone, how to get independent review without a team, a worked example, AI prompts built for one-person finance, and a short FAQ.
Reading time: about 10 minutes. Probably the longest break you'll get this month.
Why the close is different when you're on your own
When you're the whole finance team, there's nobody to split the work with, nobody to cover your holiday, and nobody to check your journals. The risk isn't only a slow close. It's that errors go unnoticed because the person who made them is also the person checking.
The aim isn't to copy a five-person close. It's to do the essential steps every month, do the rest on a sensible rhythm, and build in review from outside finance.
Key terms
- Close: the process of finishing the month's accounting so the numbers can be reported.
- Independent review: a check by someone who didn't do the work. In a team of one, this usually means someone outside finance.
- Compensating control: an extra check that makes up for not being able to separate duties, such as the CEO reviewing every payment run.
- Risk-based rhythm: doing high-risk tasks every month and low-risk tasks quarterly, as a documented choice.
The one-person close, step by step
This assumes a single-entity SaaS company with an accounting system, a billing system and a payroll provider. The days are a guide; many solo finance people close in four to six working days.
Before month-end: send the requests
| Task | What "done" looks like | |
|---|---|---|
| ☐ | Send one reminder email to the whole company with cut-off dates | Expense claims, receipts and supplier invoices requested by a set date |
| ☐ | Ask the sales lead for new, changed and cancelled contracts | A list with start dates, terms and anything unusual |
| ☐ | Confirm starters, leavers and pay changes with whoever handles HR | Payroll inputs agreed before the payroll is run |
| ☐ | Ask budget holders about services received but not invoiced | A short list of likely accruals |
AI shortcut: write one request email template with AI once, then reuse it every month. Ask for a version with a short table of dates and a one-line "why this matters" so people actually reply.
Day 1 to Day 2: transactions and revenue
| Task | What "done" looks like | |
|---|---|---|
| ☐ | Reconcile every bank account | Ledger balance agrees to the bank statement |
| ☐ | Reconcile payment processor payouts (for example Stripe) | Sales, fees and refunds booked separately; each payout explained |
| ☐ | Post all supplier invoices, card spend and expense claims | Nothing waiting in the inbox for the month |
| ☐ | Post the payroll journal from the payroll provider's report | Gross pay, employer National Insurance, pension and deductions booked |
| ☐ | Reconcile billing system to ledger and roll forward deferred revenue | Opening + billed − recognised = closing, agreed to the ledger |
AI shortcut: let your accounting software suggest bank matches daily during the month, so Day 1 is just the last few days. For billing, give an approved AI tool the billing export and the ledger sales report and ask for a list of differences by customer and invoice.
Day 2 to Day 3: costs and the balance sheet
| Task | What "done" looks like | |
|---|---|---|
| ☐ | Book accruals for costs incurred but not invoiced | Hosting, contractors, professional fees covered |
| ☐ | Release prepayments and post depreciation | Recurring journals ran and agree to schedules |
| ☐ | Reconcile high-risk balance sheet accounts every month | Bank, debtors, deferred revenue, accruals, VAT, PAYE, pension |
| ☐ | Reconcile low-risk accounts on a set rhythm | Fixed assets, deposits, small prepayments done quarterly, by documented choice |
| ☐ | Clear the suspense account | Nil, or every item explained |
Day 3 to Day 4: review, report and lock
| Task | What "done" looks like | |
|---|---|---|
| ☐ | Run a flux check: P&L vs last month and budget | Every movement over your threshold has a reason |
| ☐ | Get independent review of manual journals over a set amount | Reviewer has seen and approved them, with evidence kept |
| ☐ | Produce the management accounts and KPIs | P&L, balance sheet, cash, ARR and runway, agreed to the ledger |
| ☐ | Lock the period | No further postings without a note of why |
| ☐ | Write down one thing to fix next month | A single line in your close notes |
AI shortcut: AI can act as a first reviewer, not the final one. Give it the month's journal list and ask it to flag round amounts, unusual accounts, journals posted after the lock date, or anything that looks out of pattern compared with the last three months. You then explain each flag, and your independent reviewer sees the list.
Getting independent review without a team
This is the part that solo finance people most often skip, and the part auditors and investors most often ask about. Common approaches:
| What needs review | Who can review it | How often |
|---|---|---|
| Payment runs | CEO or a director approves in the bank before release | Every run |
| Payroll | CEO or a director approves the payroll summary | Every month |
| Manual journals above a set amount | CEO, a director or an external accountant | Monthly |
| Supplier bank detail changes | A second person confirms by phone on a known number | Every change |
| Balance sheet reconciliations | External accountant reviews a sample | Quarterly |
| Management accounts | CEO reads and asks questions; keep a note of the discussion | Monthly |
The reviewer doesn't need to be an accountant. They need to see the evidence and be able to ask "why?". Keep a record: an email reply, an approval in the system, or a signed PDF.
Worked example: MonthEndClub Co Ltd's solo month-end
MonthEndClub Co Ltd is a fictional UK SaaS company with one finance manager. In October, they find a £2,400 annual software invoice that was coded straight to software costs on 1 October.
The subscription runs from 1 October to 30 September. Only one month belongs in October: £2,400 ÷ 12 = £200. The other 11 months, 11 × £200 = £2,200, are a prepayment.
Correcting journal:
| Account | Dr | Cr |
|---|---|---|
| Prepayments | £2,200 | |
| Software costs | £2,200 |
October's software cost for this subscription is now £2,400 − £2,200 = £200. A recurring journal releases £200 a month from November to September: 11 × £200 = £2,200, which clears the prepayment.
The company's policy is that manual journals over £1,000 are reviewed by the CEO. The finance manager sends the journal, the invoice and a one-line explanation. The CEO replies "approved", and the email is saved with the October close file. That's the evidence an auditor would look for.
Covering a holiday
The finance manager is away for the first week of December. The November close moves to a "lite" version: bank, payroll journal, billing and deferred revenue are done before leaving or on return; accruals use the recurring list; low-risk reconciliations wait for the quarter. The CEO knows the pack will be three days late, and why. An external accountant is on standby for anything urgent.
Common mistakes and audit watch-outs
- No independent review at all. Even a short monthly review by the CEO is far better than none, and is the first thing many auditors ask about in small companies.
- Doing every task every month. Trying to run a full team's close alone often means the high-risk tasks get rushed. Pick a documented rhythm for low-risk ones.
- Undocumented choices. "I reconcile fixed assets quarterly" is a control if it's written down and followed. Otherwise it looks like a gap.
- Annual invoices straight to expense. One of the most common corrections at year-end. Check every invoice over a set amount for the period it covers.
- Knowledge only in your head. Keep short process notes, so someone can cover you in an emergency.
- Using AI as the reviewer. AI is a helpful first check. It isn't independent review, and it doesn't replace a person signing off.
- Unapproved AI tools for company data. Use only tools your company has approved for financial, customer or payroll data.
Tools that can help
Accounting software such as Xero, QuickBooks or Sage handles bank feeds, suggested matches, recurring journals and period locks. Spend tools such as Pleo capture receipts at the point of spend, which cuts the receipt chase. Billing tools such as Stripe or Chargebee can sync to the ledger. Forecasting tools such as Float help keep cash visible. None of them replace a written close and a second pair of eyes.
AI prompts to try
For a company-approved AI tool. AI drafts and flags; you check, and a second person reviews where it matters.
- Find annual invoices coded to expense. Give it: the month's purchase ledger export (supplier, description, amount, account). Ask: "List invoices over £1,000 whose description suggests they cover more than one month, such as annual subscriptions, insurance or rent." Check: each one against the invoice's service period.
- Build your accrual list. Give it: three months of supplier invoices plus this month's. Ask: "Which regular suppliers have no invoice this month, and what was their average monthly amount?" Check: with budget holders before posting anything.
- First-pass journal check. Give it: the month's manual journal list. Ask: "Flag round amounts, rarely used accounts, journals with no description and anything over £1,000." Check: explain each flag, then send the list to your reviewer.
- Draft the CEO summary. Give it: this month's P&L vs budget and last month. Ask: "Write five bullet points on the biggest movements, in plain English, with numbers." Check: every number against the pack, and add the business reasons yourself.
- Write your cover notes. Give it: your close checklist. Ask: "Turn this into step-by-step notes someone else could follow if I'm off sick." Check: try one section with the person who'd cover you.
Key takeaways
- Do high-risk tasks every month; do low-risk ones on a documented rhythm.
- Build independent review from outside finance: payments, payroll and large journals as a minimum.
- Keep the evidence of review. An email reply counts.
- Use AI as a first checker and drafter, never as the reviewer.
- Write short notes so the close can survive your holiday.
FAQs
How long should a one-person close take?
For a single-entity SaaS company with tidy systems, many solo finance people close in four to six working days. Complex billing or multiple entities usually add time.
Who can review my work if I'm the only accountant?
Typically the CEO or another director for payments, payroll and large journals, and an external accountant for a quarterly sample of reconciliations. The reviewer doesn't need to be an accountant to ask good questions.
Can AI replace a second reviewer?
No. AI is useful for spotting unusual entries and drafting explanations, but it isn't independent and can be wrong. Treat it as a first pass that makes the human review quicker and better.
When is it time to hire help?
Common signs are a close that keeps slipping past Day 7, high-risk reconciliations being skipped, or no time left for cash forecasting and analysis. A part-time bookkeeper or outsourced support for transaction processing is a common first step.
Related guides
- Who Does What at Month-End: A Role Chart for Small Finance Teams
- The SaaS Month-End Close Checklist
- What to Automate First in Your Close
- Managing Prepaid Software Subscriptions
More in Month-End Close guides.
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This guide is general information about common practice. It isn't tailored to any business, and standards, tax rules and figures change. Check your own circumstances, the latest rules and, where needed, a qualified professional before acting.
Last reviewed: October 2026.