The Monthly Bookkeeping Checklist: Close Every Month with Confidence

1. Reconcile every account

• Match each bank account, credit card, and loan account to its statement.
• Investigate any difference before moving on — a small gap now becomes a mystery later.
• Confirm the ending balance in your books equals the statement balance.

2. Categorize what's left

• Clear out uncategorized transactions from the bank feed.
• Fix miscategorized items — they quietly distort your reports.
• Attach receipts to anything that might be questioned later.

3. Review money owed — both ways

• Check accounts receivable: who still owes you, and how late are they?
• Send reminders on overdue invoices.
• Check accounts payable: confirm upcoming bills are recorded and scheduled.

4. Record the non-bank items

• Record depreciation, loan interest, and recurring journal entries.
• File and remit sales tax if you collect it.
• Reconcile payroll if you have employees.

5. Read your reports

• Profit & Loss: is the month in line with what you expected? Flag anything odd.
• Balance Sheet: review cash on hand, receivables, and payables.
• Save a PDF of the month's reports so you have a permanent snapshot.

Want the full rhythm?

This post covers the monthly close. For the complete daily, weekly, monthly, and quarterly cadence, see the full small business bookkeeping checklist — or grab the free printable PDF version.