Start with complete source records
Collect sales invoices, supplier bills, credit notes, expense receipts and bank statements for the month. Keep the original supporting documents alongside your accounting records. A bank transaction tells you money moved; the invoice helps explain what the transaction was for.
Reconcile every account
Compare each bank and card statement with the ledger. Investigate missing entries, duplicate transactions and charges that have not been recorded. Keep a list of unresolved differences with an owner and a follow-up date, rather than forcing an adjustment to make the figures match.
Review money owed and money due
Look at outstanding customer invoices and unpaid supplier balances. Separate genuinely overdue items from agreed payment terms. An accurate receivables list gives you a useful starting point for collections; a reliable payables list helps plan payments without surprises.
Check the balance sheet as well as profit
Review loans, deposits, fixed assets and other balances that carry forward. Record the reason for unusual movements. A profit report can look plausible while old balances remain unexplained, so review both sides of the accounts.
Finish with decisions
Prepare a short summary of revenue, costs, cash, overdue invoices and open questions. Decide which actions matter next month. Assign responsibilities for document collection and review so the close becomes a routine, rather than a rush at the end of the year.
Put the next step into practice.
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