Running a business requires more than delivering a product or service — it involves keeping your finances accurate and up to date. That’s where your month‑end bookkeeping routine becomes essential. When done consistently, it provides the clarity you need to make confident decisions, meet your tax obligations, and keep your business in a strong financial position.
Many business owners confuse the roles of financial professionals, asking whether they need a bookkeeper vs accountant. A bookkeeper ensures the records are up to date and reconciled, while an accountant uses those records to provide tax guidance and financial advice. Without a strong bookkeeping routine, your accountant’s job becomes more difficult, and your reports less accurate.
This guide outlines what should be included in your month-end routine, why it matters, and how to do it efficiently.
Why a Month‑End Bookkeeping Routine Matters
A structured month-end process ensures nothing slips through the cracks. You catch errors early, monitor your financial performance, and stay prepared for BAS, super, and tax reporting.
Maintains Accurate Financial Records
Bookkeeping errors build up over time when not addressed. Reconciling accounts, reviewing transactions, and checking reports every month keeps your records clean and reliable.
Improves Cash Flow Awareness
By the end of each month, you need to know how much is owed to you, how much you owe, and what your cash position looks like. This helps you plan for upcoming expenses or opportunities.
Supports Tax and BAS Reporting
Monthly bookkeeping makes quarterly BAS lodgement less stressful. You’ll already have your GST, PAYG, and super contributions recorded and categorised.
Step One: Organise and Categorise All Transactions
Your first priority should be ensuring that all transactions for the month are entered, coded, and matched correctly.
Upload All Receipts and Invoices
Ensure all purchase receipts and supplier invoices have been uploaded to your accounting system. This is particularly important for GST claims and business expense deductions.
Categorise Expenses Correctly
Each expense must be assigned to the correct account — for example, office supplies, travel, or subcontractors. Misclassifying expenses can affect reporting accuracy and your tax position.
Record All Income
Double-check that all sales, services, and customer payments are accounted for. If you issue invoices, make sure none are missing for the period.
Step Two: Reconcile Your Accounts
Reconciliation is the process of ensuring your financial records match your bank, credit card, and loan accounts.
Match Bank Transactions
Your bookkeeping software should allow you to match recorded income and expenses to your bank transactions. Any discrepancies must be corrected immediately.
Reconcile Credit Card and Loan Accounts
If you use a business credit card or have financing in place, ensure these statements are also reconciled. Include interest charges, repayments, and any annual fees.
Investigate Unmatched Transactions
Unmatched or duplicated transactions can distort your reports. If a payment is unaccounted for, review receipts and contact the relevant party to clarify.
Step Three: Review Accounts Receivable and Payable
Knowing what you’re owed and what you owe others helps you manage cash and avoid delays in payments.
Check for Overdue Invoices
Run an aged receivables report to find unpaid invoices. Follow up with clients who are past due and consider adjusting payment terms if late payments are frequent.
Review Bills and Upcoming Payments
Review your accounts payable and schedule supplier payments according to due dates and your current cash position. Avoid paying too early if it affects liquidity.
Confirm Payments and Allocate Correctly
Ensure all incoming payments are allocated to the correct invoices and that any partial payments are tracked accurately.
Step Four: Review Payroll and Super Obligations
Payroll is a major expense for many businesses. At month-end, verify that employee payments are complete and correct.
Finalise Pay Runs
Ensure that all employee wages, leave accruals, and PAYG withholding for the month have been processed. Generate payslips and keep them on file.
Calculate Superannuation Liabilities
Track super contributions owed to staff. While super is usually paid quarterly, tracking it monthly helps prevent last-minute cash flow issues and ensures you remain compliant with deadlines.
Prepare STP Reports
Single Touch Payroll reporting must be submitted to the ATO after each pay run. Review your reports for any errors and correct them before submission.
Step Five: Review Key Financial Reports
Financial reports show how your business is performing. Reviewing them monthly helps you understand trends and adjust strategies as needed.
Profit and Loss Statement
Check your profit and loss (P&L) report to see income, expenses, and net profit for the month. Compare to previous months to identify increases or drops.
Balance Sheet
Review assets, liabilities, and equity. Check for any unusual entries or outstanding balances that need investigating.
Cash Flow Summary
Look at your cash inflows and outflows to understand whether your business generated or used cash during the month.
Step Six: Prepare for BAS and Other Compliance
While BAS is quarterly for most small businesses, preparing monthly helps you stay ahead.
Track GST Collected and Paid
Check GST on sales and expenses to ensure it’s recorded accurately. If you use cash accounting, only include payments actually received or made.
Calculate PAYG Withholding
If you employ staff, confirm your PAYG withholding obligations for the month. These amounts must be paid as part of your BAS or IAS (Instalment Activity Statement).
Keep All Supporting Documentation
Maintain electronic or physical copies of invoices, receipts, and reports. If the ATO audits your BAS, you must be able to justify every figure.
Step Seven: Back Up and Close the Month
Finalising the month involves locking in data and backing up your records to protect against future loss or errors.
Lock the Period
In your bookkeeping software, lock the month once all reconciliations and reviews are complete. This prevents accidental changes to closed periods.
Back Up Your Data
Ensure you have a backup of your records stored securely, especially if you’re not using a cloud-based system. If you’re cloud-based, confirm that your backups are functioning correctly.
Note Any Irregularities
If there were any issues during the month — such as a bounced payment, staff change, or supplier dispute — note it in your system for future reference.
Common Mistakes to Avoid
Bookkeeping errors often arise when the month-end process is rushed or skipped entirely.
Leaving Reconciliation Too Late
Delaying reconciliation increases the risk of mistakes. Transactions pile up and errors go unnoticed until tax time.
Forgetting to Review Reports
Generating reports is not enough — you need to read and understand them. Ignoring discrepancies means problems go unresolved.
Mixing Personal and Business Transactions
Using personal cards or accounts for business expenses creates confusion and makes reconciliation harder. Keep accounts separate and transactions clean.
When to Seek Help
Not every business owner has the time or skills to manage month-end bookkeeping alone.
You’re Always Behind
If your books are constantly weeks behind or your BAS is always a last-minute rush, it may be time to outsource to a bookkeeper.
You Don’t Understand the Reports
Reports are only useful if you know what they show. If you’re not sure how to read your P&L or balance sheet, a professional can help explain.
You’re Unsure About Compliance
If GST, PAYG, or super deadlines confuse you, or if you’re not confident with software, hiring support prevents mistakes and penalties.
Frequently Asked Questions
What’s the difference between a bookkeeper and accountant in month-end tasks?
A bookkeeper handles daily and monthly transactions, reconciliations, and reporting. An accountant uses that data for tax returns, advice, and compliance. Both are important but serve different roles.
How long should a month-end routine take?
With consistent weekly updates, month-end can take just a few hours. If records are messy or reconciliation is overdue, it may take several days to complete properly.
Do I need to review reports every month?
Yes. Monthly review helps you spot errors early, manage cash flow better, and make informed decisions. Skipping this step weakens your financial control.
Conclusion
Month‑end bookkeeping routine: what you should be doing is about more than ticking boxes. It’s about keeping your financial foundation solid. Clean, up-to-date books help you meet obligations, avoid penalties, and make decisions based on facts — not assumptions.
By following a clear month-end process, you’ll avoid common mistakes, gain greater insight into your business, and stay in control of your growth. Whether you do it yourself or work with a bookkeeper, make month-end bookkeeping part of your regular business rhythm. The benefits go far beyond compliance — they shape the future of your business.