You don’t need to spend hours on your finances every month. But you do need a routine. A short monthly review helps you catch problems early, stay on top of deadlines, and make decisions based on facts rather than feelings.
Here’s a practical checklist you can complete in about an hour, ideally with your accountant.
✅ 1. Make Sure the Books Are Up to Date
- All sales and expenses for the month are recorded
- Bank and credit card accounts are reconciled
- Receipts and supplier invoices are captured and filed
- Unusual or unexplained transactions are investigated
Why it matters: every decision you make is only as good as the numbers behind it.
✅ 2. Check Your Cash Position
- What’s the current bank balance?
- Is it above your minimum cash buffer?
- What large payments are due in the next 30 to 60 days?
- Is your 13-week cash flow forecast updated?
✅ 3. Review Who Owes You Money
- Review your accounts receivable aging report
- Follow up on anything overdue
- Watch for customers who are paying later than usual
✅ 4. Review What You Owe
- Check upcoming supplier payments
- Take advantage of early-payment discounts where they make sense
- Make sure no bills are overdue
✅ 5. Confirm Tax and Payroll Obligations
- Payroll source deductions remitted on time
- GST/QST set aside, and the return prepared if it’s due
- Upcoming instalments or filing deadlines noted
Why it matters: late remittances can lead to penalties and interest that are easy to avoid.
✅ 6. Review Your Income Statement
- Revenue compared with last month and the same month last year
- Gross margin: is it stable?
- Expenses: has anything jumped unexpectedly?
- Net profit compared with budget
✅ 7. Watch Your Key Numbers
Pick 3 to 5 indicators that matter most for your business, for example:
- Gross margin %
- Labour cost as a % of sales
- Average days to collect from customers
- Inventory levels
- Cash on hand
Track them every month so trends are easy to spot.
✅ 8. Ask the Big Questions
- What changed this month, and why?
- What’s creating pressure?
- What needs attention before next month?
- Are any decisions coming up (hiring, purchases, financing) that need numbers behind them?
Make It a Habit
Put a fixed date in your calendar, for example the 15th of each month, once the previous month’s books are closed. Consistency matters more than perfection.
Frequently Asked Questions
How long should a monthly financial review take?
About an hour, if your books are up to date. Most of the time goes into discussing what the numbers mean.
What reports do I need for a monthly review?
At minimum: your income statement, balance sheet, accounts receivable aging, accounts payable, and a cash flow forecast.
Should I do the review myself or with my accountant?
Ideally with your accountant or advisor, who can explain changes and flag issues you might miss.
Let Us Handle the Checklist
With AccoClariT, the routine work of reconciliations, remittances, deadlines and follow-ups is taken care of, and you receive your financial information early enough to act on it. Book your free 45-minute consultation.