Month-End Closing Checklist for Small Businesses

Daily recording keeps your books current. A month-end close makes them correct. It's a short routine — under an hour for most small businesses — that catches mistakes while they're still fresh and turns a month of entries into decisions.

Print this checklist or copy it into your phone and run it on the 1st or 2nd of every month.

#1. Record everything that's still in your pocket

Go through your wallet, WhatsApp, SMS and bKash history for anything not yet recorded: small cash payments, a customer's bKash payment you forgot, bank charges, mobile recharge for business.

#2. Match every money account

For each account, the book balance on the last day must equal reality:

• Cash — count the drawer.
• Bank — compare with the statement's closing balance. See bank reconciliation.
• Mobile wallets — compare with the app balance.

If an account doesn't match, find the difference now. It's much harder in three months.

#3. Check for transfers recorded wrongly

A deposit of cash into the bank should be a transfer, not a sale plus an expense. Scan the month for large round amounts in both income and expense and fix any duplicates.

#4. Review the "Other" and uncategorised entries

Open a purpose-wise report. If "Other" or "Miscellaneous" holds more than a few entries, move them to proper purposes. See choosing categories.

#5. Follow up on customer dues

List customers with outstanding baki and plan who to call this week. Note the dates you promised to follow up. See managing baki.

#6. List what you owe

Supplier dues, unpaid salaries, rent, utility bills received but not paid. You'll need this for the cash plan in step 9.

#7. Read the profit and loss statement

Look at three numbers: total income, total operating expenses and net profit. Then compare with last month and the same month last year. Our guide on reading a P&L explains what to look for.

#8. Look at the top five expenses

Which purposes grew the most? Is the growth expected (Eid stock) or a leak (transport, small purchases)? One focused question each month is enough. See cutting expenses.

#9. Plan next month's cash

Using steps 5 and 6, write down expected money in and out for the next four weeks. Spot any week where cash could go negative. See cash flow management.

#10. Save the reports

Download the month's profit and loss, cash flow and account statements as PDF and keep them in a folder (or email them to yourself). They become your monthly history for tax returns and bank loans.

#A sample timeline

#Doing it in Averiq

Most steps are faster with software. Live balances make step 2 a quick comparison; the trash shows anything deleted during the month; purpose-wise, month-wise and profit & loss reports take one click and download as A4 PDF. If several people record entries, the activity log shows who entered or changed what — useful when a balance doesn't match. You can start free and run your first close next month.

#FAQ

#How long should a month-end close take?

For a small business with daily records, 30–60 minutes. If it takes longer, daily recording is probably being skipped.

#What if I find a mistake from a previous month?

Correct the original entry rather than adding a balancing entry in the current month, so each month's report stays accurate. Keep a note of the correction.

#Do I need an accountant for month-end?

No. The checklist above is designed for owners. An accountant is helpful at year end and for tax.