Month-End Close SOP Template for E-Commerce Teams
Free month-end close SOP template for e-commerce finance teams. Step-by-step with checklist, roles, and KPIs for Shopify revenue reconciliation, shipping accruals, and marketplace payouts.
Purpose
Close the books accurately within 5 business days of month-end for e-commerce businesses selling through Shopify, marketplaces (Amazon, Walmart), and wholesale channels. This SOP covers Shopify revenue reconciliation against payment processor deposits, shipping cost accruals from ShipStation, returns reserve adjustments, marketplace payout reconciliation, and the final review process that catches discrepancies before financial statements are finalized.
Scope
Covers all monthly close activities for e-commerce revenue, cost of goods sold, shipping expenses, marketplace fees, and returns reserves. Applies to businesses selling through Shopify direct, Amazon, Walmart Marketplace, and wholesale channels. Does not cover payroll processing (handled by HR/payroll SOP), tax filings (handled by the tax team), or annual audit preparation.
Prerequisites
- Shopify Admin access with financial reports permissions
- Payment processor dashboard access (Shopify Payments, Stripe, PayPal)
- ShipStation access with shipping cost reports
- Amazon Seller Central and Walmart Marketplace access for payout reports
- Accounting software access (QuickBooks, Xero, or NetSuite) with journal entry permissions
- Prior month's close workbook completed and filed as the comparison baseline
Roles & Responsibilities
Staff Accountant
- Export financial data from Shopify, ShipStation, and marketplace dashboards by the 2nd business day
- Prepare reconciliation workbooks for revenue, shipping costs, and marketplace payouts
- Draft all journal entries for accruals, reserves, and adjustments
Finance Controller
- Review all reconciliation workbooks and journal entries for accuracy
- Approve the returns reserve adjustment based on the trailing 3-month return rate
- Sign off on the completed close package and file it in the monthly close archive
Operations Manager
- Provide shipping cost data from ShipStation and confirm any outstanding carrier invoices
- Verify inventory valuations match the physical count or perpetual inventory system
- Confirm all outstanding purchase orders and their financial impact on the current period
Procedure
On the 1st business day of the new month, set the revenue cutoff. Any orders placed before 11:59 PM on the last day of the month belong to the closing month, regardless of when they ship. Export the Shopify sales report for the full month: go to Shopify Admin > Analytics > Reports > Sales > Total Sales. Filter by date range and export to CSV. This report is the starting point for revenue reconciliation.
- aIn Shopify Admin, navigate to Analytics > Reports > Total Sales
- bSet the date range to the first and last day of the closing month
- cExport to CSV and save to the monthly close folder with filename: 'Shopify-Sales-[YYYY-MM].csv'
- dNote the gross sales, discounts, returns, net sales, taxes collected, and shipping charges
- eCross-check the total against the Shopify Home dashboard summary for the same period
Completion Checklist
Key Performance Indicators
Days to close (business days from month-end to signed close)
5 business days or fewer
Revenue reconciliation accuracy (unexplained variance as % of revenue)
Under 0.5%
Journal entry error rate (entries requiring correction after posting)
Under 2% of total entries
Close package completeness (all required reconciliations and entries included)
100% — no missing items at Controller review
Why This Matters for E-Commerce
E-commerce month-end close is more complex than traditional retail because revenue flows through multiple channels (Shopify, Amazon, Walmart) with different payout schedules, fee structures, and settlement formats. Without a documented close process, the same reconciliation gets done differently each month depending on who handles it, variances go unexplained, and financial statements become unreliable. A repeatable close SOP means the books are accurate, the close is fast, and the team can catch problems (margin erosion, fee increases, rising return rates) while there's still time to act.
Common Mistakes
- ×Using Shopify's payout date instead of order date for revenue recognition — this misallocates revenue between months, especially around month-end
- ×Forgetting to accrue for shipping costs on labels purchased but not yet invoiced by the carrier — this understates expenses
- ×Not adjusting the returns reserve monthly, which causes the balance sheet to slowly drift from reality until a big write-off is needed
- ×Treating Amazon's bi-weekly settlement as monthly and missing the proration for periods that span the month boundary
- ×Skipping the variance analysis against prior month — this is where you catch margin erosion, fee increases, and inventory shrinkage early
E-Commerce-Specific Notes
E-commerce accounting must handle multiple payment processors (Shopify Payments, Stripe, PayPal), each with different fee structures and deposit timing. Amazon and Walmart deduct their fees before paying you, which means the payout you receive doesn't equal the gross sale — you need to reconstruct the gross sale and record the fees separately. Shipping cost accounting gets complicated with zone-based pricing (the same label costs different amounts depending on destination), dimensional weight surcharges, and carrier rate changes mid-month. Consumer protection regulations require accurate revenue reporting, and PCI DSS compliance means financial records involving payment data must be handled securely.
Frequently Asked Questions
Learn More About Month-End Close
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