Closing out your books each month may not be the most exciting part of running a small business — but it’s one of the most important. Consistent month-end bookkeeping helps you keep tabs on your business’s financial health, catch errors early, and prepare for tax time long before your company’s tax deadline rolls around.
Whether you’re doing it all yourself or working with a bookkeeper or accounting firm, this checklist will help you stay organized and on top of your finances.
If you’re just getting started, the SBA’s guide to managing your finances offers a helpful overview for small business owners.
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Your Essential Month-End Bookkeeping Checklist
1. Reconcile Bank and Credit Card Accounts
Start by comparing your bank and credit card statements with your accounting records. Look for any discrepancies, double charges, or missing transactions. Catching these early helps avoid headaches down the line.
2. Record All Income and Expenses
Make sure every transaction is entered and categorized correctly. This includes invoices, receipts, bills, and any business-related purchases or payments. Clean, up-to-date books are crucial for accurate reporting.
3. Review Accounts Receivable
Check which customers still owe you money. Send polite reminders or follow-ups for any overdue invoices. Staying on top of receivables keeps your cash flow healthy.
4. Review Accounts Payable
Ensure all vendor bills are recorded and plan timely payments. Avoiding late fees and maintaining good vendor relationships is just good business.
5. Record and Reconcile Payroll
If you run payroll, make sure those records are accurate and match payroll provider reports. Don’t forget to record taxes withheld, benefits paid, employee reimbursements and other employee-related costs.
6. Reconcile Petty Cash
If your business uses petty cash, reconcile it just like a bank account. Count the cash on hand and ensure all expenses are recorded with proper receipts.
7. Update Inventory Records
If you sell products, inventory tracking is key. Adjust for purchases, sales, and any shrinkage. Consider doing a physical count periodically to catch discrepancies.
8. Review Financial Statements
Generate and review your:
- Profit & Loss Statement (Income Statement)
- Balance Sheet
- Cash Flow Statement
These three reports offer critical insight into your business’s performance. If you’re unsure how to read or interpret them, check out our guide: Financial Statements Made Simple.
Look for any unexpected fluctuations or unusual entries. Regular review helps you spot issues before they grow.
9. Track Fixed Assets and Depreciation
Record any new assets purchased and remove any that were sold or disposed of. Keep depreciation schedules up to date if applicable.
10. Accrue Monthly Expenses
Not all bills come in on time. Record any expenses you know occurred but haven’t been billed yet—such as utilities or rent.
11. Backup Your Financial Data
Always back up your books at the end of each month. Use both cloud storage and secure local options to ensure your data is safe.
12. Check Compliance Deadlines
Stay aware of upcoming deadlines for:
- Sales tax filings
- Payroll tax reports
- Estimated tax payments
- Other state or federal obligations
Missing deadlines can lead to costly penalties. For a full list of estimated tax payment due dates and details, refer to the IRS estimated tax payment deadlines or check out our blog post: Quarterly Estimated Taxes: Who Needs to Pay and How to Avoid Penalties.
13. Prepare Management Reports
If you’re working with a team or board, compile and share key financial insights. Highlight performance metrics, trends, and any action items.
14. Compare Budget to Actuals
Evaluate how your actual income and expenses stack up against your budget. This helps you understand your trajectory and make informed decisions moving forward.
Final Thoughts
Keep It Consistent
Performing these tasks monthly may feel like a lot, but consistency is key. Regular check-ins on your books give you clarity, confidence, and control—plus, they save you from the stress of a year-end scramble.
Need Help Staying on Top of Your Books?
Our bookkeeping services are designed to support small businesses just like yours. Whether you’re looking for a monthly cleanup or strategic financial guidance, we’re here to help.
At Beckley & Associates PLLC, we specialize in helping small business owners stay on top of their finances and grow with confidence.
Ready to take the next step? Let’s partner together to support your business success.
