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Multi-Entity Monthly Close Checklist

A guided monthly rhythm for owners who run 2+ LLCs. Each step is tuned for the multi-entity realities single-entity checklists miss — shared-cost allocations, mirrored intercompany journal entries, due-to / due-from reconciliation, and the consolidated view your bank actually wants. Your check-state is saved in your browser so you can work the close across a few sittings.

Close period:

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1. Before you touch the books

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Set the month up so the close doesn't become a discovery process. Five minutes here saves an hour later.

Confirm the allocation methodology has not changed

If you decided to shift anything (salary split, rent %, software), that change gets memo'd before the close, not during.

Pull bank feeds for every entity through month-end

Every LLC. No exceptions — dormant entities still need to be reconciled.

Check credit-card feeds and any petty cash

Missing receipts become next month's problem if you skip this.

Gather intercompany events logged this month

Use the Due To / Due From Tracker output if you're using it — otherwise a running list from your shared notes app.

2. Reconcile each entity's books

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One entity at a time. Cash first, then P&L. Don't skip around between entities — that's how allocations drift.

Reconcile bank accounts to statement for each entity

Reconcile credit-card accounts for each entity

Confirm all payroll for the month is booked on the paying entity

Confirm A/R and A/P agings match sub-ledger for each entity

Run and tie out a trial balance for each entity

3. Book monthly allocations

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This is the step that tells the truth — which entity actually benefited from each shared expense. If you skip this, one entity looks bloated and another looks artificially profitable.

Apply owner-salary allocation across entities per methodology

The cash stays on the paying entity; the expense moves via a due-to / due-from journal entry. See Due To / Due From Tracker.

Apply shared-overhead allocation (rent, software, insurance, admin)

Use the allocation spreadsheet — don't eyeball it in the moment.

Apply management fee (if you have a management services agreement)

Flat monthly, percentage of revenue, or cost-plus — whatever the agreement says. Book the invoice and the corresponding payable.

Book intercompany journal entries on both sides (mirror entries)

Every allocation touches two sets of books. Mirror entries keep due-to / due-from reconciled.

4. Reconcile due-to / due-from

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If the intercompany accounts don't mirror exactly, something got booked wrong. Fix it now — it compounds.

Pull due-to and due-from balances on every entity's balance sheet

Confirm every due-from on one entity has a matching due-to on another

Investigate any variance greater than $0.01

Variance is almost always a missed mirror entry or an allocation booked on only one side.

Flag any intercompany balance > 12 months old for settlement

Aging intercompany balances are an IRS and lender risk — settle via cash, management fee, or documented loan.

5. Produce the consolidated view

0 / 4

This is the story you tell the bank, the board, and yourself. It only works if steps 1-4 are clean.

Roll up P&L across all entities under common ownership

Eliminate intercompany revenue and expense on consolidation

Management fees charged by one entity to another should not inflate consolidated revenue.

Eliminate due-to / due-from on consolidated balance sheet

Calculate consolidated EBITDA and DSCR on the financing entity

6. Owner review

0 / 5

The bookkeeper books. The CEO judges. This is the step most owners skip, and it's the step that tells you whether the numbers are real.

Review each entity's P&L against budget or prior month

Scan balance sheet for any unusual movement

Big shifts in receivables, inventory, intercompany, or undeposited funds deserve a question.

Review consolidated P&L and consolidated DSCR

Write a 2-3 sentence owner's note: what happened this month, what's changing

This is the version you'd send to a board, a lender, or a future buyer. Starting the habit now is cheaper than starting when you're in diligence.

Decide the 1-3 things you're going to act on this week

7. Documentation the file needs

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The paper trail is what turns 'informal intercompany' into 'professionally managed multi-entity structure' in a banker's eyes.

Save the allocation worksheet with the period as the filename

Save journal entries (from the Due To / Due From Tracker or QBO) in the shared drive

Update the allocation methodology memo if anything changed

Confirm invoices under any management services agreement are issued and filed

Save the consolidated P&L + balance sheet package as a PDF

8. Quarterly and annual cadence (skip if not applicable)

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Things that don't happen every month but should be on the multi-entity calendar.

Quarterly: review allocation methodology for material business changes

Quarterly: CPA call — any tax position shifts? Any elections to think about?

Annually: true-up intercompany balances — cash settlement, management fee, or documented loan

Annually: attorney review of management services agreement and operating agreements

Annually: consolidated financials ready for lender / insurer / investor requests

Companion tools: Use the Due To / Due From Tracker to log intercompany events and export the journal entries for Step 3. Use the Multi-Entity Cost Allocation tool to generate the allocation worksheet. Use the DSCR Calculator in Step 5 to check your financing entity's covenant.

Check with your CPA and attorney. This checklist covers bookkeeping rhythm, not tax positions, legal elections, or liability structure. Your CPA should review your allocation methodology annually; your attorney should review your intercompany agreements at least every two years or when material facts change.