The close is the checklist that turns a month of activity into statements you can rely on. A construction close usually includes: reconciling bank and card accounts, tying AP, AR and retainage to the GL, accruing unbilled subcontract work and material, accruing payroll for the split week, updating PM cost-to-complete forecasts, locking the WIP schedule and posting the over/under billing entry, running depreciation, and reviewing manual entries. Then the period is locked.
Why it matters
Banks and sureties want monthly or quarterly WIP and statements they can trust. A close that drags into the third week means decisions get made on stale numbers, and a close that isn’t locked means last month can quietly change.
Worked example
AP closes on the 3rd so no more October bills post to October; the GL stays open until the WIP entry posts on the 6th; then October is closed for every module.
Common mistakes
- Closing without tying subledgers to the GL.
- Skipping accruals, which distorts percent complete and earned revenue.
- Leaving periods open “just in case”.
How os.construction handles it
The accounting preview has period locks by module (AP, AR, payroll, job cost, cash, GL), soft close, reopen with a reason, and a close checklist prepared and approved by different people before a hard close. See Close the month.