This guide is general educational information, not individualized accounting or tax advice. Consult your CPA for tax treatment and other specialized accounting questions.
Start with the accounting file
Identify the business accounts included in QuickBooks Online and confirm the reporting period. Review any bank-feed entries that are still uncategorized or marked for investigation.
- Check that the right business accounts are connected.
- Review any uncategorized or duplicate bank-feed entries.
- Flag unusual transactions for a careful review.
Categorize activity consistently
Use a practical chart of accounts so recurring operating costs are entered into the same categories from month to month. This makes your financial statements easier to compare and interpret.
- Check fuel, software, insurance and other recurring operating expenses.
- Review whether large equipment transactions need special accounting treatment.
- Ask your CPA about tax classifications and unusual items.
Reconcile every active account
Compare the bookkeeping activity and balances with the official bank and credit-card statements. Importing data is not the same as reconciling it, and an unexplained difference should be researched rather than forced to zero.
- Work through the relevant statement period for each account.
- Investigate missing, duplicated or incorrectly dated transactions.
- Retain a copy of completed reconciliation reports.
Review the financial statements
Once accounts are reconciled, take a fresh look at the profit and loss statement and balance sheet. Differences between periods can be useful signals, but they should be interpreted in business context.
- Review unusual changes in operating expense categories.
- Investigate account balances that do not make sense.
- Record questions to discuss with your bookkeeper or CPA.
Common pitfalls to avoid
- Assuming the imported bank feed means bookkeeping is complete.
- Skipping reconciliation for accounts that show little activity.
- Relying on financial reports before investigating significant coding or balance errors.
Consistent categories, completed reconciliations and understandable financial reports are the foundation of a useful month-end review.
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