month end bookkeeping checklist every business owner needs
Month-end bookkeeping doesn’t need to be stressful—even if you haven’t kept up on it weekly. By following a few simple steps, you can close your books efficiently, ensure accuracy, and gain insights into your business’s financial health.
1. Collect and Organize Receipts
Receipts are essential for accurate bookkeeping. While we don’t always receive every receipt, it’s important to gather as many as possible. After the 10th of the next month, categorize your bank feed even if some receipts are missing—this ensures all transactions are posted in QuickBooks Online (QBO) and your accounts remain accurate.
Pro Tip: Tracking receipts consistently helps prevent errors and makes tax time much easier.
2. Review Accounts Payable (AP) and Accounts Receivable (AR)
Once all transactions are posted, review your AP and AR. This step helps you catch:
Bills recorded as unpaid when they were already paid
Receipts entered incorrectly
Outstanding invoices that need follow-up
Why does this matter? Accurate AP and AR tracking ensures your financial statements reflect reality, and helps maintain healthy cash flow.
3. Reconcile Your Accounts
Reconciliation is non-negotiable. This step verifies that your accounting software matches your bank and credit card statements. Look for:
Duplicate transactions
Outstanding cheques or transactions that haven’t cleared
Bank fees or errors that haven’t been recorded
Once reconciled, you can trust your financial statements. Reconciliation is the foundation of accurate bookkeeping and gives you confidence in your numbers.
4. Pull and Review Financial Statements
With reconciled accounts, you can generate your profit and loss, balance sheet, and statement of cash flows. Reviewing these reports helps you:
Monitor business performance
Make informed decisions
Identify trends and potential issues
5. Analyze and Act
Month-end isn’t just about checking boxe, it’s an opportunity to gain insight into your business. Ask yourself:
Where am I overspending?
Which clients are slow to pay?
Are there opportunities to reduce costs or increase revenue?
By making month-end bookkeeping a habit, you’ll reduce stress, maintain accuracy, and unlock the insights your business needs to thrive.
