Monthly Bookkeeping Checklist

If your bookkeeping only happens in a panic before each BAS deadline, you are not alone. It is one of the most common patterns we see in small businesses, and it is why so many owners have no clear idea how last month actually went until long after they could do anything about it.

A monthly close fixes this. It is a short, repeatable routine you run soon after each month ends, so errors are caught while the details are still fresh and your reports stay reliable. Here is a practical checklist to work through.

Reconcile bank, card and loan accounts

Start with reconciliation, because everything else depends on it. Match every transaction in your software against the actual bank statement, not just the bank feed.

• Clear any unmatched or duplicated feed transactions
• Investigate anything sitting in a suspense or clearing account
• Confirm the closing balance in your software equals the statement balance

Review what you are owed

Run an aged receivables report and read it line by line. Chase overdue invoices while they are recent, because the older a debt gets, the harder it is to collect. Query anything that looks wrong, and check that customer payments have been applied against the right invoices.

Review what you owe

Do the same on the payables side. Confirm supplier bills are entered, check supplier statements against your records, and flag anything in dispute. This is also the moment to plan the coming month's cash flow, since you can now see what is due and when.

Check payroll and super

Payroll errors are expensive to fix later, so give them a monthly look even if pay runs seem routine.

• Confirm wages in your accounts match what was reported through Single Touch Payroll
• Check the superannuation liability account matches what has actually been accrued and paid
• Make sure super is paid by the due date, as late payments have real consequences
• Review leave balances for anything unusual

Review your GST coding

Run a GST report and scan it for miscoded items. Bank charges, insurance, overseas subscriptions and government fees are common trouble spots, and a few minutes here makes BAS time far less stressful. If you find a pattern of errors, fix the underlying rule causing it, not just the individual transactions.

Finish with a sense check

Run a profit and loss and a balance sheet, compare them to the previous month, and question anything that looks odd. Once you are satisfied, lock the period in your software so the numbers cannot quietly change underneath you. A close only counts once the period is locked.

Make it a habit

Book a recurring slot in your calendar soon after month end and treat it like a client appointment. The routine gets faster every month as your coding improves, and if you use a bookkeeper, agree on who owns each item on this list so nothing falls through the gaps.

When should I do the monthly close?

Soon after the month ends, once most bank transactions have cleared. Many businesses aim for the first or second week of the new month, while the details are still easy to remember.

Do I need accounting software to follow this checklist?

It helps a lot. Bank feeds, aged reports and period locking do most of the heavy lifting, and the same checklist takes far longer on spreadsheets alone.

What if I am several months behind?

Work through the backlog month by month in date order, starting with the oldest, and reconcile the bank before touching anything else. If the backlog is large, a bookkeeper or accountant can help you catch up faster.