Monthly Bookkeeping Checklist: What Every Business Should Review Before Month-End
Monthly bookkeeping isn’t just a routine administrative task—it’s one of the most important habits for maintaining a healthy, profitable business. When bookkeeping is reviewed consistently before month-end, business owners gain clearer insight into cash flow, avoid costly errors, and make smarter decisions throughout the year.
Waiting until tax season or year-end to review your books often leads to stress, missed deductions, and surprises you didn’t plan for. A structured monthly bookkeeping checklist helps ensure your financials are accurate, complete, and ready for reporting.
Below is a practical, easy-to-follow monthly bookkeeping checklist every business should complete before closing the books.
Why Monthly Bookkeeping Reviews Matter
Monthly reviews help you:
Catch errors early
Monitor cash flow in real time
Stay compliant with tax and reporting requirements
Prepare accurate financial statements
Make informed decisions with confidence
Consistent month-end reviews create a strong financial foundation and eliminate the need for rushed cleanups later.
Monthly Bookkeeping Checklist: What to Review Before Month-End
1. Reconcile Bank Accounts
One of the most important steps is reconciling all bank accounts.
Make sure:
Every transaction in your accounting software matches your bank statement
No duplicate or missing transactions exist
Outstanding checks and deposits are properly accounted for
Bank reconciliations ensure your cash balance is accurate and trustworthy.
2. Reconcile Credit Card Accounts
Just like bank accounts, credit cards should be reconciled monthly.
Review:
Charges posted correctly
Refunds or credits applied properly
No personal expenses mixed with business spending
Accurate credit card reconciliations help control spending and prevent misstatements.
3. Review Accounts Receivable (AR)
Outstanding invoices directly impact your cash flow.
Check:
Which invoices are unpaid
How long balances have been outstanding
Whether follow-ups or reminders are needed
A regular AR review helps you collect payments faster and reduce bad debt.
4. Review Accounts Payable (AP)
Know what you owe before month-end.
Confirm:
Bills are entered accurately
Due dates are correct
No duplicate or missed vendor bills exist
This ensures you maintain good vendor relationships and avoid late fees.
5. Categorize All Transactions Properly
Uncategorized or miscategorized transactions lead to inaccurate financial statements.
Review:
Uncategorized expenses
Personal vs business expenses
Correct expense and income categories
Accurate categorization ensures meaningful reports and simplifies tax preparation.
6. Review Payroll and Payroll Liabilities
If you run payroll, review it every month.
Check:
Payroll entries recorded correctly
Payroll taxes and liabilities match payroll reports
Benefits and deductions are posted accurately
Payroll errors can lead to compliance issues if not addressed early.
7. Review Loan Balances and Payments
For business loans or lines of credit, confirm:
Payments are recorded correctly
Interest and principal are split accurately
Balances match lender statements
This helps ensure liabilities on your balance sheet are accurate.
8. Review Inventory (If Applicable)
If your business tracks inventory:
Verify quantities on hand
Adjust for shrinkage, damage, or obsolete inventory
Ensure inventory valuation is accurate
Inventory errors can significantly distort profit margins.
9. Review Fixed Assets and Depreciation
Confirm:
Asset purchases are recorded correctly
Assets are categorized properly
Depreciation is recorded consistently
This step is especially important for businesses with equipment or vehicles.
10. Review the Profit & Loss Statement
Your Profit & Loss (P&L) shows how your business performed for the month.
Look for:
Unexpected spikes in expenses
Missing income
Trends compared to prior months
Ask: Does this report reflect what actually happened in the business?
11. Review the Balance Sheet
The balance sheet provides a snapshot of your financial position.
Check:
Cash balances
Loan balances
Owner equity accounts
If something looks off, it usually signals an underlying bookkeeping issue.
12. Review Cash Flow
Cash flow determines your ability to operate.
Review:
Cash inflows vs outflows
Upcoming obligations
Whether reserves are growing or shrinking
Monthly cash flow awareness prevents surprises and supports planning.
13. Save and Organize Supporting Documents
Before closing the month:
Upload receipts and invoices
Store statements securely
Keep documentation accessible
Good documentation supports audits, tax filings, and financial reviews.
Q&A: Monthly Bookkeeping Reviews
Q: How long should monthly bookkeeping take?
A: For most small businesses, 1–3 hours per month once systems are in place. Clean books save time over the long term.
Q: What happens if I skip monthly reviews?
A: Errors accumulate, reports become unreliable, and year-end cleanup becomes costly and stressful.
Q: Can accounting software automate this?
A: Software helps, but human review is still essential to ensure accuracy and catch issues automation can’t detect.
Q: Should I review my books even if I’m not profitable yet?
A: Absolutely. Monthly reviews are critical during growth or early stages to monitor cash flow and spending.
Q: When should I close the books?
A: Ideally within the first 10–15 days of the following month after completing all reviews and reconciliations.
How Brecken Business Solutions Can Help
At Brecken Business Solutions, we help business owners stay on top of their financials with confidence.
Our services include:
Monthly bookkeeping and reconciliations
Cleanup and catch-up services
Financial reporting and review
Cash flow and budget support
Ongoing guidance to help you understand your numbers
We make sure your books aren’t just done—but done right.
Call to Action
If monthly bookkeeping feels overwhelming or time-consuming, you don’t have to handle it alone.
Contact us today to learn how Brecken Business Solutions can help keep your financials accurate, organized, and stress-free all year long.
