1. Gather the source records
Collect the bank and credit card statements for the period, sales reports, supplier bills, payroll reports, and documentation for unusual activity. Keep a short missing-items list so unresolved requests stay visible.
2. Reconcile each account
Compare the statement balance with the accounting balance. Review uncleared payments, duplicate entries, transfers, and items posted to the wrong period. A reconciliation should explain the difference rather than force the numbers to match.
3. Review what you are owed and what you owe
Look at open customer invoices and unpaid supplier bills. Confirm which items are still valid, who owns the follow-up, and whether a dispute or missing payment is affecting the balance.
4. Check the unusual movements
Compare income and expense categories with recent periods. A large change can be legitimate, but the explanation should be recorded while the details are fresh. Review owner transfers separately from normal operating activity.
5. Close with a short conversation
Review the profit and loss statement and balance sheet together. Record open questions, actions, and who is responsible. Use the same close checklist next month, updating it when the business changes.
This article is general educational information, not personalized accounting, tax, legal, or investment advice. The right approach depends on your records and circumstances.