What Should Your Bookkeeper Do Every Month? A Small Business Owner’s Checklist
You pay for bookkeeping every month. But when you sit down to make a business decision, you still have questions: Are the numbers current? Did we actually make money? Why does something look different from last month?
If that sounds familiar, it helps to understand what a monthly bookkeeping process should accomplish, and what to ask for when you hire someone to handle it.
The exact services depend on your business and your agreement. But the goal should be clear: reliable records, understandable reports, and fewer unanswered questions about your finances.
Here are six things to look for.
1. Transactions are recorded and reviewed
Connecting your bank account to accounting software is a starting point. Someone still needs to review what comes in and determine how it belongs in your books.
That includes checking for duplicates, applying categories consistently, and asking about transactions that are unclear. Software rules can save time, but an incorrect rule can repeat the same mistake every month.
For example, a transfer between two business bank accounts should not create additional sales. If it is mistakenly recorded as revenue, your reports can make business performance look better than it really is.
Ask your bookkeeper: “How do you handle transactions you need more information about?”
A clear process for questions is a good sign. Uncertainty should be resolved, rather than buried in a miscellaneous category.
2. Bank and credit card accounts are reconciled
Reconciliation means comparing the activity and balances in your accounting records with your statements and explaining any differences.
It helps identify missing entries, duplicates, and transactions that have not cleared. A bank feed showing no transactions left to categorize does not, by itself, prove that the account has been reconciled.
Every relevant bank and credit card account should be included in the agreed monthly process, even if an account has very little activity.
Ask your bookkeeper: “Through what date are all of my accounts reconciled, and are there any unresolved differences?”
That gives you a more useful answer than simply asking whether the books are “done.”
3. Unusual balances and changes are investigated
Reports can look polished while still containing mistakes. Before delivering them, your bookkeeper should review the numbers for items that need an explanation.
Perhaps an expense suddenly doubled. Maybe an account has an unexpected negative balance. Or a large amount has been sitting in an uncategorized account for months.
Those items are not automatically errors, but they deserve attention.
Imagine your software expense usually runs around $300 a month and suddenly reaches $1,500. That could reflect a new subscription, an annual payment, a duplicate entry, or a categorization mistake. Understanding what happened makes the report more useful.
Ask your bookkeeper: “Was there anything unusual this month that I should know about?”
4. You receive reports on a predictable schedule
For many small businesses, the monthly reporting package starts with a profit and loss statement and a balance sheet.
The profit and loss statement shows recorded revenue, expenses, and profit or loss for a period. The balance sheet shows recorded assets, liabilities, and equity at a particular date. Together, they provide a broader picture than your bank balance alone.
Your business may also benefit from receivables, payables, or cash flow reporting. Agree on which reports are included and when you will receive them.
A realistic deadline also depends on you providing statements, receipts, and answers on time. Both sides should understand those responsibilities.
Ask your bookkeeper: “When will I receive my monthly reports, and what do you need from me to meet that deadline?”
5. Open items have a clear owner
Some issues take more than one email to resolve: an unidentified payment, a missing invoice, or a customer balance that needs investigation.
A useful monthly process keeps those items visible and identifies who is responsible for the next step. Otherwise, small questions can accumulate until the books become difficult to trust.
Be specific about scope, too. Tracking unpaid invoices is different from contacting customers to collect them. Recording bills is different from managing payments. Those responsibilities should be discussed before you assume they are included.
Ask your bookkeeper: “What is still outstanding, and which items need my action?”
6. You have a way to ask questions
You should know whom to contact when a report does not make sense.
That does not mean every bookkeeping engagement includes budgeting, forecasting, or ongoing financial strategy. More extensive analysis may require a separate advisory engagement. But you should understand how to get clarification about the reports you receive.
A useful question is: “What changed this month, and what explains it?”
The answer can help you distinguish a recording issue from an actual change in the business—and decide whether you need to investigate further.
A quick check for your own business
Open your latest monthly reports and ask:
Do I know which month is fully completed?
Have all bank and credit card accounts been reconciled?
Are unusual transactions and balances explained?
Do I receive my reports on a consistent schedule?
Do I know what is still unresolved and who is handling it?
Do I know whom to contact with questions?
If several answers are “I’m not sure,” start by clarifying your current process and the scope of your bookkeeping agreement. You may need better communication, a cleanup project, or more ongoing support.
Need a more dependable monthly bookkeeping process?
At Reustle Accounting and Finance, I work directly with business owners to keep their books organized and provide financial reports they can understand. Based in Garnet Valley, I serve businesses across Delaware County, Chester County, and the greater Philadelphia area.
Whether you are handling the books yourself or have fallen behind, we can discuss where things stand and what level of support makes sense for your business. If you want to see the cost of handling your own books and weigh it against hiring someone like Reustle Accounting and Finance, check out our free DIY vs. Professional Bookkeeping Calculator.
Explore our monthly bookkeeping services, or schedule a free consultation with Stephen Reustle, CPA, to discuss your current process and bookkeeping needs.