What to Prepare Before Your Monthly Bookkeeping Review
Knowing what to prepare before your monthly bookkeeping review helps your accountant understand the month without guessing about transactions. Gather statements, source documents, details about unusual activity, and a clear list of open questions before you send the records.
Start with a checklist of every active account
List every business bank account, credit card, loan, payment processor, and other account recorded in the books. Gather each statement or period report, including records for accounts opened or closed during the month, so activity is not missed just because an account is new or no longer in use.
Compare your list with the accounts in the general ledger. Mark any missing statement or report and say whether the account is new, recently closed, or still waiting for a document.
Statements show that money moved, but they do not always explain why. Collect supporting source documents too, such as receipts, invoices, bills, and agreements, and keep them in a consistent monthly folder that you and your accountant can access.
For owners who want help establishing a recurring handoff, PTN Accounting’s monthly bookkeeping service explains the available support, secure document handoff, and monthly accountant review. You can use the page to discuss what support fits your needs.
Match receipts, invoices, and bills to transactions
Collect customer invoices and sales records, supplier bills, receipts, and proof of payment for the month. Group or name each file so it can be matched to the related transaction, which makes income and spending easier to understand than a bank description alone.
Add a short explanation and evidence for refunds, reimbursements, unusual deposits, and owner contributions or withdrawals. A receipt, customer message, or transfer record can clarify what happened and help prevent the item from being mistaken for routine income or an ordinary expense.
Identify personal activity that passed through a business account, as well as business costs you paid personally. Explain each transaction and keep the original document with your note; do not leave it blended into the usual business categories.
Set aside documents for one-off business events
Separate paperwork for significant events from the recurring monthly packet. For a large equipment or other asset purchase, include the invoice, proof of payment, and any relevant purchase or financing paperwork so the accountant can review it as a possible fixed asset rather than assume it belongs with everyday expenses.
For loans, provide the current loan statement and records of new borrowing, repayments, or other changes. Flag the activity because a loan payment may include amounts that need to be understood separately from routine operating costs.
For transfers between business accounts, note both accounts, the date, amount, and reason. This context helps distinguish a movement of the business’s own funds from new income or an expense.
Tailor the packet to how your service business operates. Include project reports, processor settlements, or contractor documentation where relevant.
Bring outstanding customer and vendor balances up to date
Prepare an accounts receivable aging or open-invoice list showing each customer, invoice date, amount due, and latest payment or collection update. Mark overdue, disputed, and partially paid balances so expected collections are visible alongside cash already received.
Prepare an accounts payable aging or unpaid-bill list with each vendor, due date, amount, and any dispute or payment plan. Include bills received but not yet paid, since they represent obligations even when no cash has left the account.
Include merchant processor reports that explain sales, fees, refunds, and deposits, especially when one deposit combines payments from several customers. If an invoice or bill is missing, identify it and say who is following up rather than leaving the balance off the review.
Include payroll, contractor, and tax records that changed
Gather the month’s payroll summaries and records of payroll-related payments or adjustments. Include contractor payment records that relate to the books so those costs can be reviewed with the other activity for the period.
If there was payroll or business tax activity, include relevant notices, filed forms, and payment confirmations. Identify the payment and the period it relates to, and flag tax payments or loan activity for review instead of assuming either belongs in a routine expense category.
Tax treatment, filing obligations, and deadlines can depend on current rules and your business’s circumstances. Ask your accountant to check the applicable requirements.
Review the reports and hand over open questions
Have the profit and loss statement, balance sheet, and cash flow statement ready when available. Use them to discuss the month’s results, balances, and cash movements, but do not treat a report as a substitute for the documents behind its entries.
Look for income or expenses that seem to be in the wrong category in the chart of accounts. Pay particular attention to asset purchases, loan activity, tax payments, transfers, and owner activity, and give the accountant the reason for any correction you propose.
Keep an issue log with the transaction or document, the question, the person responsible, the next step, and whether the matter is resolved. If an answer changes, preserve the earlier note or evidence so the decision trail remains clear.
Before sending the monthly packet, use this handoff checklist:
- Every account in the books is listed, and its statement or missing-document status is noted.
- Receipts, invoices, bills, and payment evidence are grouped with the transactions they explain.
- One-off purchases, loans, transfers, and business-specific activity have supporting records.
- Open customer invoices, unpaid vendor bills, processor reports, payroll records, and tax activity are included where relevant.
- Reports are ready when available, and unresolved questions have an owner and a next step.
Keep the records and notes together in the month’s folder. That gives your accountant a usable packet and gives you a clear way to follow up on anything still outstanding.
Frequently Asked Questions
What should I do if a receipt or supplier invoice arrives after the monthly review?
Send it as a dated follow-up for the relevant month and identify the transaction it supports. Note both the document date and when you received it so the accountant can decide how to handle the timing.
Should I send records for a business account that had no transactions this month?
Yes, send the period statement or report and note that the account had no activity. Also say whether it remained open, since a zero-activity account is different from an account whose statement has not arrived.
How should I handle a transaction that I cannot identify?
Record the transaction details and what you have already checked, such as asking the employee who used the card or reviewing available vendor information. Keep it marked as unresolved rather than inventing a description or category.
Can I send digital copies of receipts and statements to my accountant?
Ask which secure delivery method your accountant wants you to use, then send complete, readable copies with clear filenames. Keep your own organized copy of the files in the month’s records.
What should I do if a customer or vendor balance on my list does not match my records?
Compare the dates and amounts on both records, looking for a payment, credit, or invoice that may have been applied differently. Request a current statement from the customer or vendor if needed, and include the difference in your issue log.
Recordkeeping references
For the recordkeeping principles behind this checklist, see IRS guidance on supporting business records and IRS guidance on recording business transactions.
Conclusion
What to prepare before your monthly bookkeeping review comes down to a complete account list, matched source documents, event-specific records, current open balances, and a clear handoff of unresolved questions. A consistent monthly packet helps your accountant focus on reviewing the activity and identifying what still needs attention.
This is general information, not advice for a specific business.
Prepared with AI assistance. General educational information; not individualized tax, legal or accounting advice.