Start the monthly close by reconciling bank and credit-card accounts to statements. Confirm that sales, fees, refunds, payroll, and transfers have been recorded in the right period and category.

Attach missing receipts, identify personal payments, and review unusual balances. A transfer between business accounts is not a new sale, and a loan deposit is not automatically revenue. Document the explanation instead of forcing every deposit into the same income category.

Review a profit-and-loss report and balance sheet after reconciliation. Resolve questions while the transactions are still familiar, then preserve the reports and supporting files. Clean monthly books help the preparer review taxes and help the owner understand actual business performance.

Your next steps

• Reconcile every business bank and card account.
• Resolve missing receipts and uncategorized transactions.
• Review reports and back up the completed records.

General education, not individualized tax or legal advice. Illustrations use stated assumptions and do not promise a refund or tax saving.