Monthly Business Closing

A recurring checklist to reconcile accounts and close the books each month.

Run through this the same time every month to keep your finances accurate.

20 items · 4 sections · business finance accounting

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Prepare records

  • Collect all sales invoices issued during the month
  • Collect all supplier and expense receipts
  • Reconcile the business bank account against your records
  • Reconcile credit card statements
  • Chase any outstanding client payments

Bookkeeping

  • Record all transactions in your accounting system
  • Categorize expenses correctly for reporting
  • Calculate and record depreciation if applicable
  • Review accounts receivable and accounts payable balances
  • Post payroll entries for the month

Review

  • Generate a profit and loss statement for the month
  • Compare actual results against budget or forecast
  • Review cash flow for the upcoming month
  • Check inventory counts if applicable
  • Review any outstanding loans or debt payments

Close out

  • Back up financial records and export reports
  • File any monthly tax filings required Requirements vary by country, such as VAT returns.
  • Share the financial summary with stakeholders or your accountant
  • Archive the month's documents in a labeled folder
  • Set goals or adjustments for the next month