Gather the month's activity
Collect statements, sales reports, payroll summaries, expense documentation and any other records that explain business activity. Establish a clear cutoff so transactions are recorded in the appropriate period.
Reconcile your bank and credit card accounts
Compare general ledger balances with outside statements, investigate outstanding items and document any differences. Investigate unexplained differences rather than carrying them forward month after month.
Review significant balance-sheet accounts
Look at receivables, payables, loans, accrued expenses and inventory where applicable. Ask whether balances are supported by a report or other record, and whether older items need action.
Look beyond the totals
Compare revenue, gross margin and expense categories with the prior month or budget if available. A sharp change should lead to a question: volume, pricing, timing, classification or an actual operating change?
Record the exceptions and next steps
Keep a short list of missing documents, unusual entries, reconciliations needing follow-up, and questions for the owner. A repeatable checklist makes the next close easier and provides continuity.
Know the limitations
Bookkeeping and management reporting are not the same as an audit or assurance engagement. The reliability of any analysis depends on the completeness and quality of the underlying records.
Consistent reconciliations and documented exceptions are often more useful than an elaborate report built on unreliable data.
Educational information only. Specific tax treatment, filing requirements and service availability depend on your facts and applicable law.