Free Small Business Monthly Bookkeeping Checklist

This is the same monthly close we run for our bookkeeping clients, simplified for owners who keep their own books. Tick items as you go, or print it and keep it next to your desk.

1. Monthly transaction review

Do this in the first week after month-end, once statements are available.

Review all business bank activity for the monthEvery deposit, payment, transfer and fee, not just the bank feed.
Review all business credit card activity
Categorize every outstanding transactionNothing left in Uncategorized, Ask My Accountant or suspense accounts.
Check that revenue is recorded onceDeposits matched to invoices or sales reports, not added twice.
Move personal charges out of business expensesRecord them as owner draws or contributions instead.
Look for duplicate entriesEspecially items entered by hand and also imported from the bank feed.

2. Reconciliation

Reconcile to the statement balance, not to the bank feed.

Reconcile every bank account to its statement
Reconcile every business credit card
Reconcile loans and lines of credit to lender statementsSplit each payment into principal and interest.
Reconcile payment processors (Stripe, Square, PayPal, marketplaces)Payouts should equal sales minus fees and refunds.
Investigate and explain any differences
Record missing transactions found during reconciliation

3. Accounts payable and receivable

Skip this section if you run purely on cash.

Review unpaid customer invoices and follow up on late ones
Review open vendor bills and upcoming due dates
Apply customer payments and credits to the right invoices
Check for unusual balancesNegative receivables or payables usually mean a payment was recorded in the wrong place.

4. Reporting

Fifteen minutes with your reports each month is where the value of bookkeeping shows up.

Review your Profit & Loss statement
Review your Balance SheetCash should match the bank; loan balances should match lender statements.
Compare this month with last month and the same month last year
Investigate any large or unusual expenses
Lock the month in your accounting software once it's reviewed

5. Tax readiness

Small monthly habits that save a scramble at year-end.

Save receipts and supporting documents for the monthA photo in your accounting app or a dated folder is enough.
Keep records that support deductible expensesWho, what and why for meals, travel and vehicle use.
Track equipment and other fixed-asset purchases separately
Collect W-9s from new contractors and track what you pay them
Record payroll from your payroll provider's reports
Note questions for your accountant instead of guessing

Need help managing your books every month?

Our CPA-led, QuickBooks ProAdvisor certified team runs this checklist for you every month and sends your reports by the 15th. If you're behind, we'll catch you up first.

Schedule a bookkeeping consultation See bookkeeping prices