1. Gather the month’s source records
Collect the bank and card statements for every active business account, along with processor summaries and other records relevant to your scope. A missing account statement can leave a reconciliation incomplete even when the feed appears current.
2. Review new and uncategorized transactions
Check for duplicate entries, transfers, owner transactions and expenses that need an explanation. Maintain a questions list for the owner. Avoid assigning a category just to empty a review queue.
3. Reconcile each bank and card account
Compare the statement ending balance with the bookkeeping reconciliation. Investigate differences and older uncleared items. A zero reconciliation difference is useful only when the underlying transactions and dates are also correct.
4. Review balances that need explanation
Look at receivables, payables, loans and payment-clearing accounts when they are part of the agreed scope. Unusual or growing balances deserve a question before the reports are relied on.
5. Read the reports together
Review the profit and loss alongside the balance sheet. Ask what changed, which balances need explanation, and whether the reports reflect the completed bookkeeping period. Profit and cash movement are related, but they are not the same measure.
6. Close the questions loop
Document unresolved items, who will answer them, and the next reporting date. Keep the workflow consistent enough that the following month starts with a clear handoff. Bring tax decisions and specialist accounting questions to the appropriate professional.
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General bookkeeping information. Your business’s accounting and tax treatment may require advice from your own professional.