Month-end Checklist for Bookkeepers 2021

Month-end Checklist for Bookkeepers 2021

The month-end can be quite a daunting period for businesses. Without the right month-end closing checklist and proper closing and reporting procedures in place, your business can face serious financial repercussions. However, month-end closing and reporting procedures don’t have to be so stressful. With the right processes, you can ensure that records are accurate and easy to access.

A month-end checklist is a step-by-step process of reviewing, reconciling, and recording all of your business transactions. It enables you to record your company’s sales, expenses, payments, and important financial information. Here is the month-end checklist so you can practice smart bookkeeping for your business.

Month-end checklist for bookkeepers

1. Reconcile cash and credit card statement

Reconcile cash and credit card statement

You need to know that all your business cash transactions are correct and that you are working with an accurate cash position. Reconciling bank accounts and credit cards each month makes it easier to find and fix errors in the time to correct them.

2. The aged account payable report

The payable accounts report should be reviewed to ensure the bills entered throughout the month are accurate and have been paid on time. Doing this will protect your business’s credit and reputation. However, incorrect transactions or other figures at the bottom of the report also need to be removed to accurately reflect the company’s net income and other current liabilities.

3. Open vendor deposit report

The open vendor deposit reflects the vendor deposits on project and inventory purchase orders that have not been applied to a vendor invoice. It also includes deposits that have been partially used on vendor invoices. This deposit report needs to be reviewed to ensure that orders are being filled properly by the vendor.

4. The aged accounts receivable report

The aged accounts receivable report

The accounts receivable report is reviewed to ensure that your clients are making payments in a timely manner. It also gives you an alert to any invoicing errors like duplication, etc. Reviewing this report will also help protect your credit and overall reputation. Any incorrect invoices, invoices with nominal balances, etc., that are not going to be paid by the client should be handled accurately so as to not overstate your revenue. 

5. Open client deposit report

This report reflects the deposits on proposals that you have received from your client but not applied to a client invoice. This report also shows client invoices that use a portion of the original deposit or retainer. To ensure that invoicing is done in a timely manner and to monitor the usage of the client’s funds, it is important to review the open client deposit report.

6. Work in Progress (WIP) report

Work in Progress (WIP) report

The WIP report ensures that you are invoicing your clients for merchandise for which you have already purchased. This report helps identify additional charges like freight, shipping, reimbursements, etc., that at times get overlooked and should ideally be invoiced to the client.

7. The Balance Sheet

The balance sheet at the end of the month in comparison to the previous month gives a detailed insight into the management of your assets and liabilities. It helps you identify any significant changes and figure out why there is an increase or a decrease.

8. The income statement

The income statement

At the end of the month, the income statement, or profit and loss statement, reflects what your firm has earned and spent. This should be compared with the previous month. Additionally, if you prepare monthly budgets, you should also review your income statement against your budget.


Having a month-end checklist and completing that checklist every month is smart to run a business with greater responsibility. Additionally, it is important to measure your business growth. It enables you to perform a miniature version of a year-end business audit. Keeping accurate records can help you prepare for any business activities like tax audits or even selling your business. By performing month-end checklists, you are building a focused company that survives and thrives.

What is your month-end bookkeeping checklist? What are the best practices that you follow? Let us know in the comments below.

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