Monthly Bookkeeper Checklists

Use one reconciliation worksheet per account. Record the account name, statement period, statement ending balance, book balance, difference, and reviewer initials. A simple worksheet prevents notes from being scattered across email, bank portals, and accounting software.

Check the opening balance before reviewing current activity. If the opening balance does not match the prior reconciliation, stop and fix that issue first. A wrong opening balance makes every current-month comparison unreliable.

Set a cutoff date for transactions. For example, reconcile the business checking account through March 31, then separately review deposits dated April 1 through April 5 that relate to March sales. This separates a real omission from a normal bank-processing delay.

Use the same account name in the books and the bank records. If the books contain “Operating Checking” and the bank portal contains “Business Checking ending 4821,” record both names on the worksheet. This avoids reconciling the wrong account.

Checklist Items

Set the Reconciliation Point

☐ Select the correct bank or credit card account.

☐ Enter the statement start date.

☐ Enter the statement ending date.

☐ Enter the statement ending balance.

☐ Confirm the prior reconciliation date.

☐ Confirm the prior reconciliation ending balance.

☐ Compare the current opening balance.

☐ Save the statement in the monthly records folder.

☐ Record the preparer and completion date.

The statement ending date controls the review. For a statement ending March 31, include transactions that cleared through March 31, even if you entered them in the books on April 2. Do not force April activity into March simply because it relates to March work.

Match the Statement Balance

☐ Open the account reconciliation screen.

☐ Enter the statement ending balance.

☐ Enter the statement ending date.

☐ Compare the beginning balance to the prior report.

☐ Review the cleared balance.

☐ Compare the book balance to the bank balance.

☐ Record the difference before changing entries.

☐ Confirm the difference reaches zero.

The target is a zero difference, not merely a close number. A $3.25 difference may be a bank fee, but it still needs a recorded transaction and supporting detail. Do not use an unexplained adjustment to make the screen show zero.

For a credit card, compare the statement balance as a liability. A payment to the card should reduce the credit card balance and appear as a payment from the bank account. It should not be recorded as a new expense.

Match Deposits and Credits

☐ Match each deposit to the bank statement.

☐ Match each deposit to the sales record.

☐ Confirm the deposit date.

☐ Confirm the deposit amount.

☐ Review deposits grouped from undeposited funds.

☐ Compare processor payouts to settlement reports.

☐ Identify deposits missing from the books.

☐ Identify deposits recorded twice.

☐ Confirm bank fees deducted from processor payouts.

A payment processor may deposit $970 after collecting $30 in fees from a $1,000 customer payment. The books should show the $1,000 sale, the $30 processing fee, and the $970 bank deposit. Recording only the deposit understates both sales and fees.

Check deposits that cross month-end. A $2,400 customer payment recorded on March 31 may not clear the bank until April 1. Keep it in March if the books support that date, then list it as an outstanding deposit on the reconciliation.

Match Checks, Payments, and Withdrawals

☐ Match each check to the statement.

☐ Match each electronic payment to the statement.

☐ Confirm the payee name.

☐ Confirm the payment amount.

☐ Confirm the transaction date.

☐ Review uncleared checks older than 30 days.

☐ Investigate payments cleared for different amounts.

☐ Identify withdrawals missing from the books.

☐ Identify duplicate withdrawals.

☐ Void stale checks with approval.

Review recurring withdrawals carefully. Rent, software, insurance, payroll taxes, and loan payments often repeat monthly, but the amounts can change. Match the actual statement amount instead of copying last month’s entry.

For a loan payment, separate principal and interest according to the loan statement. The bank withdrawal may be $1,250, while the books need a $900 principal reduction and $350 interest expense. Treating the full payment as interest misstates both the loan balance and expenses.

Match Transfers Between Accounts

☐ Match transfers in both accounts.

☐ Confirm the transfer date.

☐ Confirm the transfer amount.

☐ Verify the sending account.

☐ Verify the receiving account.

☐ Remove duplicate transfer entries.

☐ Investigate transfers recorded in one account only.

☐ Exclude transfers from income and expenses.

A $5,000 transfer from savings to checking should appear as a withdrawal from savings and a deposit into checking. It is not revenue, and it should not be counted as an expense. Both sides must clear during the related account reconciliations.

Review transfers near month-end. If checking shows a withdrawal on March 31 but savings shows the deposit on April 1, document the timing difference rather than creating another entry.

Review Bank Fees and Interest

☐ Match monthly service fees.

☐ Match wire and transfer fees.

☐ Match returned-payment fees.

☐ Match credit card interest.

☐ Match bank interest income.

☐ Confirm the correct expense account.

☐ Record missing fees.

☐ Remove duplicate fee entries.

☐ Attach supporting statements.

Bank fees often explain small differences, but they should not be ignored because they are small. A $15 monthly fee becomes $180 over a year, and an unrecorded fee leaves the cash balance overstated.

Credit card interest may post separately from the card payment. Match both the payment and the interest charge. The payment reduces the card liability; the interest charge records an expense.

Find Timing Errors

☐ Compare transaction dates with clearing dates.

☐ List outstanding checks.

☐ List outstanding deposits.

☐ Review pending card charges.

☐ Review deposits clearing after month-end.

☐ Check payroll withdrawals near month-end.

☐ Document expected clearing dates.

☐ Avoid changing valid transaction dates.

Timing errors are not always bookkeeping errors. A check dated March 29 may clear April 3. A card purchase made March 31 may post April 2. Keep valid transactions in the correct accounting period and list the item as outstanding.

Use the bank’s posted date for reconciliation and the source document’s date for accounting when appropriate. If the difference comes from normal processing time, document it as timing. If the difference comes from an incorrect entry date, correct the entry.

Investigate Differences

☐ Sort the difference by amount.

☐ Search for exact duplicate amounts.

☐ Search for reversed transactions.

☐ Search for missing decimal points.

☐ Search for transposed digits.

☐ Compare the bank CSV to the ledger.

☐ Check deleted or voided transactions.

☐ Review manual journal entries.

☐ Document each correction.

Search common error patterns first. A $540 difference may be one missing $540 payment, two duplicate $270 entries, or a $5,400 entry typed with one extra zero. Exact-amount searches usually find these issues faster than reviewing every transaction in date order.

Use the Three-Match Reconciliation Loop for every exception:

• Match the bank record to the ledger entry. - Match the ledger entry to the source document. - Match the correction to the final statement balance.

If a transaction fails one match, do not mark the reconciliation complete. Add a note stating the issue, correction, source, and approval. For example: “March 18 bank fee, $25, missing from books; entered to Bank Fees; statement page 2.”

Complete and File the Reconciliation

☐ Enter approved corrections.

☐ Re-run the reconciliation.

☐ Confirm the difference equals zero.

☐ Review the cleared transaction list.

☐ Review outstanding items.

☐ Explain unusual outstanding items.

☐ Obtain owner approval for material corrections.

☐ Export the reconciliation report.

☐ Attach the bank statement.

☐ Save the completed worksheet.

☐ Lock the completed accounting period.

☐ Record follow-up items separately.

Define a material correction before starting if the business uses a threshold. For example, require owner review for corrections over $500, unusual transfers, or any transaction affecting payroll or taxes. Smaller corrections still need support, but the approval path can be simpler.

File the statement, reconciliation report, worksheet, and correction support together. Use a consistent name such as 2026-03 Operating Checking Reconciliation. A clear file name makes the next review faster and supports questions from the owner, tax preparer, or auditor.

Pro Tips

Reconcile high-volume accounts more often than monthly. A business processing 200 card transactions each week may benefit from weekly matching, while a small operating account with 25 monthly transactions may remain manageable on a monthly schedule. The goal is to catch duplicates and missing deposits while the source records are still easy to find.

Keep an exception log instead of relying on memory. Record the account, transaction date, amount, issue, action taken, and follow-up date. A $2,400 deposit that clears in April should remain visible until it clears or someone confirms the deposit was never made.

Do not erase a difference with a plug entry. Find the bank record, ledger entry, or timing explanation that supports it. A clean reconciliation is not just a zero on the screen; it is a zero supported by matched records. That discipline keeps small errors from becoming large month-end problems.

End of chapter one. 4 more chapters in the full book.