Monthly Bookkeeping Checklist (Downloadable)
Consistency makes bookkeeping work. When every month closes the same way, your data stays accurate and your accountant stays happy. This monthly bookkeeping checklist gives you a simple, repeatable process to follow. Use it as a reference for internal staff or share it with your outsourced team to guarantee clean, reliable books every time.
Step 1 – Gather and Organize Documents
- Collect all bank, credit card, and loan statements.
- Download merchant and payroll reports.
- Gather receipts for major purchases or reimbursements.
- Verify that all bills and invoices are entered into your system.
Keeping documents centralized prevents delays later in the close cycle.
Step 2 – Reconcile Accounts
Reconcile every active account each month:
- Bank and credit cards
- Loans and lines of credit
- Payment processors (Stripe, PayPal, Square)
Confirm that balances match statements and that all transactions are posted correctly.
Step 3 – Review Transactions and Adjustments
- Check for duplicates or uncategorized items.
- Record adjusting entries such as depreciation or accruals.
- Match loan payments between principal and interest.
- Ensure all transfers are balanced between accounts.
Accurate categorization is essential for clear reports and tax compliance.
Step 4 – Review Accounts Receivable and Payable
- Send overdue invoice reminders.
- Verify that incoming payments are applied correctly.
- Review unpaid vendor bills and schedule payments.
- Confirm that all credits or refunds are posted properly.
Healthy AR/AP processes keep cash flow predictable.
Step 5 – Generate and Review Reports
Run the three standard financials:
- Profit and Loss
- Balance Sheet
- Cash Flow Statement
Review for trends, errors, or missing activity. Investigate large variances or negative balances.
Step 6 – Close and Lock the Period
After review, lock the month in your accounting software. This prevents accidental changes and preserves an accurate audit trail for future reference.
Optional Step – Summarize and Archive
Send a summary email or dashboard snapshot highlighting total income, expenses, and closing cash. Store all reports securely in a cloud folder labeled by month and year.
Learn more about our Monthly Bookkeeping Services.
Monthly Bookkeeping Cadence: Close Dates, Deliverables, and Reviews
Top 12 Bookkeeping Mistakes Small Businesses Make (And How to Fix Them)
FAQs
How long should a monthly close take?
Usually 10 to 15 days, depending on transaction volume and review depth.
Why is a checklist important?
It standardizes the close process and reduces errors from missed steps.
Can this checklist work for any business size?
Yes. Adjust it for transaction complexity and number of accounts.
Should I include my CPA in monthly reviews?
Yes. A quarterly CPA review ensures compliance and tax readiness.
