Clean books are rarely the result of one big cleanup. They come from a small routine, repeated every month. Here are five checks to run at the close of each month, and what each one catches.
1. Reconcile every bank and credit card account
Match what’s in your accounting software to the statement from the bank or card company, line by line. A reconciliation is the single best way to catch duplicate entries, missing deposits, and charges you don’t recognize, while the details are still fresh.
2. Clear out “uncategorized”
Transactions parked in a catch-all account are a sign that something still needs a home. Give each one a proper category (or a class or fund, if you track those) so your reports tell the truth.
3. Review what you’re owed and what you owe
Look at your accounts receivable and accounts payable aging reports. Which invoices are overdue? Which bills are coming due? Following up early is easier than following up late.
4. Confirm payroll ties out
If you run payroll, check that your payroll reports match what was recorded in your books, and that payroll liabilities show the balances you expect. Differences are much easier to untangle this month than next quarter. Payroll tax filings are a good question for your payroll provider or CPA.
5. Compare to last month and to your plan
Skim the profit-and-loss statement and balance sheet next to last month and, if you have one, your budget. Don’t just look for bad news; look for anything that surprises you. An unexpected jump or drop is usually either a real change worth knowing about or an entry worth fixing.
The goal isn’t perfection. It’s no surprises.
Make it stick
Pick a consistent day each month, ideally within the first week or two, block an hour, and keep a short checklist next to your software. Once the routine is steady, “closing the books” stops being a project and becomes a habit. If you’d rather have someone own it for you, that’s exactly what we do. Let’s talk.
General information only — not tax, legal, or accounting advice for your specific situation. Your CPA can confirm what applies to you.
