Monthly Bookkeeping Checklist for Small Businesses

The difference between books you can trust and books you can't is usually one routine, done every month. Here is the monthly close we run for clients, simplified for owners who keep their own books. A printable version is on our monthly bookkeeping checklist page.

Week one after month-end: review transactions

• Download statements for every bank, card and loan account.
• Review every deposit, payment, transfer and fee.
• Categorize everything; empty the Uncategorized accounts.
• Match deposits to invoices or sales reports so revenue isn't recorded twice.
• Move personal charges to owner draws.

Reconcile every account

• Reconcile each bank account and credit card to its statement ending balance.
• Reconcile loans to lender statements and split payments into principal and interest.
• Reconcile payment processors and marketplaces: payouts should equal sales minus fees and refunds.
• Investigate differences instead of forcing them to zero.

Payables and receivables

• Follow up on overdue customer invoices.
• Review bills due in the next few weeks.
• Clear negative balances, which usually mean a payment landed in the wrong place.

Review the reports

• Read the Profit & Loss: does revenue look right? Any expense much higher than usual?
• Read the Balance Sheet: does cash match the bank? Do loan balances match lender statements?
• Compare with last month and the same month last year.
• Lock the month in your software.

Tax readiness, monthly

• Attach receipts to transactions.
• Track equipment purchases separately; they're usually depreciated or expensed under special rules.
• Collect W-9s from new contractors.
• Keep a running list of questions for your accountant.

How long should it take?

At under 100 transactions a month, an hour or two once you're in the habit. If it takes a full day, or you keep skipping it, monthly bookkeeping runs this checklist for you and sends reports by the 15th of the following month.