Plumbing Business Bookkeeping: Month-End Review

Keep operating expense categories useful

Fuel, insurance, software subscriptions, supplies and equipment-related spending can appear in different patterns each month. A simple and consistent chart of accounts makes those patterns easier to review.

• Categorize common operating expenses consistently.
• Review unusually large transactions before choosing a category.
• Use your CPA for tax treatment and classification questions.

Work through uncategorized transactions

Transactions imported into QuickBooks Online can remain uncategorized or appear more than once. Review account activity carefully and resolve unknown entries based on business context rather than guessing.

• Review uncategorized bank and card activity.
• Look for duplicated entries or incorrect dates.
• Flag uncertain items for discussion with the business owner.

Reconcile the financial accounts

Compare bank and credit-card activity in the books to the actual monthly statements. A reconciled account is a more dependable starting point for financial reporting than a bank feed alone.

• Check the statement period and ending balance.
• Investigate material reconciliation differences.
• Save the reconciliation result for future reference.

Review your profit and loss and balance sheet

Once the books have been reviewed, consider what the reports say about ongoing expenses and the overall financial position. Good reports help owners recognize surprises and ask useful questions.

• Check major operating expense categories.
• Review unusual changes in account balances.
• Discuss questions about reporting or accounting treatment with your CPA.

Common pitfalls to avoid

• Waiting until year-end to review the books.
• Creating too many overlapping expense categories.
• Using reports without checking whether all accounts are reconciled.

Additional recordkeeping guidance

• IRS: recordkeeping ↗