How to Prepare for Your Monthly Bookkeeping Review

Why Monthly Bookkeeping Reviews Matter

A monthly bookkeeping review is one of the most valuable routines you can build into your business. By setting aside just a little time each month, you gain clearer insight into cash flow, catch errors early, and keep your financials ready for tax season—and loan applications—year-round.

This guide walks you through the essential steps to prepare for your monthly review so you always know exactly where your business stands.

1. Gather All Receipts, Bills & Supporting Documents

Start by collecting every piece of paperwork that ties to your financial activity for the month. Missing documents can cause misclassified expenses and inaccurate reporting.

What to Collect

• Vendor bills or invoices
• Customer payments and deposit slips
• Receipts for business purchases
• Mileage logs or trip notes
• Bank statements and credit card statements
• Loan statements or new financing documents

If you’re using the QuickBooks Online mobile app, snap photos of receipts throughout the month to make this step even easier.

2. Review Bank & Credit Card Feeds

Next, take a pass through your connected bank feeds in QuickBooks Online. This ensures all transactions are categorized correctly before reconciliation.

Key Checks

• Confirm each transaction has the correct vendor or customer
• Assign expenses to the right accounts and classes
• Review uncategorized income or expense items
• Match payments to open invoices or bills

The fewer “uncategorized” items you leave behind, the more accurate your reports will be during your review.

3. Reconcile Your Accounts

Reconciliation is the heart of clean bookkeeping. It verifies that everything in QuickBooks matches your bank and credit card statements.

Accounts to Reconcile Monthly

• Checking accounts
• Savings accounts
• Credit cards
• Lines of credit
• Loans
• Payment processors (Square, Stripe, etc.)

When all balances match, you can trust that your financial statements are accurate.

4. Review Open Invoices & Bills

A quick scan of your Accounts Receivable and Accounts Payable can highlight potential cash-flow problems before they escalate.

If you use automated invoice reminders in QuickBooks Online, this part becomes much faster.

5. Look at Your Key Financial Reports

Once everything is categorized and reconciled, it’s time to look at your financial performance for the month.

Core Reports to Review

1. Profit & Loss Statement — Are revenue and expenses trending as expected?
2. Balance Sheet — Is the business building equity or taking on new liabilities?
3. Cash Flow Statement — Do you have enough liquidity for the coming month?
4. A/R Aging Report — Who owes you money and how long has it been outstanding?
5. A/P Aging Report — What bills need your attention soon?

QuickBooks Online Advanced users can also use Fathom or custom dashboards for deeper insights.

6. Evaluate Trends & Notes

The final step is adding context to your numbers. A brief set of notes helps you stay aware of trends, issues, and goals over time.

What to Document

• Upcoming seasonal expenses (a big deal for Montana’s tourism-heavy businesses)
• Large one-time purchases
• Cash shortages or surpluses
• Unexpected revenue spikes or dips
• Reinvesting needs for equipment, marketing, or staffing

These notes will make next month’s review drastically easier—and help you make smart decisions throughout the year.

Preparing for Your Review: A Simple Checklist

1. Upload all receipts and documents into QuickBooks Online.
2. Review and categorize bank feed transactions.
3. Reconcile every active account.
4. Check open invoices and bills for accuracy.
5. Run your financial statements and compare to prior periods.
6. Add notes and highlights for next month.

Make this a recurring monthly task and your books will stay clean, accurate, and ready for anything.