An AP close fails when the books show only what the client entered, not what the business owes. This list is grouped by the question each document answers: what is open, what is missing, what was received but not billed, what was paid wrong, and who needs a 1099 later. Tax year 2026 vendor rules are noted where they differ from 2025.
Who sends itSent by the bookkeeper to a client on accrual-basis books, or on cash-basis books that still track bills, in the first few business days after month end. Hold payables open for late bills until your cutoff date, then lock the period.
Reviewed November 9, 2026 · 26 items
0 of 26 ticked
01Open bills and cutoff
02Unbilled receipts and accruals
03Vendor statements and reconciliation
04Payments, cards and clearing accounts
051099 vendor data
What firms get wrong
Closing payables on the bills entered in the system instead of the bills received, which leaves the last week of the month unrecorded.
Accruing an unbilled receipt with no quote or purchase order behind it, so the entry cannot be supported or reversed cleanly next month.
Using the 2025 threshold of $600 on 2026 payments, or the 2026 threshold of $2,000 on 2025 payments, when deciding who gets a Form 1099-NEC.
Including card payments in a vendor's 1099 total, when the payment settlement entity reports those on Form 1099-K.
Collecting a Form W-9 only at year end, after the vendor has stopped answering email.
Reconciling the AP aging total to the balance sheet but never comparing the top vendors to their own statements, so duplicate payments and unapplied credits stay hidden.
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Questions about this checklist
When should I close accounts payable each month?
There is no rule. Closing by the second or third business day gives clean numbers early but misses late bills. Many small firms hold payables open until about the 8th to 10th, then lock the period. Pick one cutoff for each client and put it on the request.
Which Form 1099-NEC threshold applies to the vendors I am tracking now?
For payments made in 2025, the threshold is $600, and those forms were due by February 2, 2026 (January 31 fell on a Saturday). For payments made in 2026, the threshold is $2,000, and the forms are due by January 31, 2027, moved to the next business day because that date is a Sunday. Both rules apply while you finish 2025 returns and open 2026 files.
Do I need an accrual for a bill that has not arrived?
On accrual books, yes when the goods or services were received in the month and the amount is reasonably determinable. IRS Publication 538 describes the all-events test and economic performance for tax. For monthly financial statements, use your firm's materiality line and write it down.
Can the monthly AP request repeat?
Yes. In Usual, a checklist can repeat monthly with reminders that stop once everything is in, and a yes or no answer, such as unbilled work, can show or hide the follow-up items.