A month-end invoice review should answer a simple question: which customer balances are still open, and what evidence explains each one?

The goal is not to pressure every customer or make an accounting conclusion. It is to create a complete, dated list that the owner and accountant can understand.

Use one clear review date

Choose the final day of the period and review every invoice that was issued on or before that date. Keep the report tied to that exact cutoff so later payments do not rewrite what was true at month-end.

For each invoice, confirm:

• customer and invoice number;
• issue date and due date;
• original amount and currency;
• payments and credits recorded by the cutoff;
• remaining balance;
• current status: sent, due, overdue, partly paid or disputed.

An invoice can be open without being overdue. Keep those ideas separate.

Confirm the invoice reached the customer

Before following up, check that the invoice was sent to the intended contact and was not returned or rejected. Preserve delivery evidence where available. If the customer raised a question, record the dispute instead of treating silence as proof that the amount is accepted.

Use customer invoicing to keep the invoice, status and balance together. A consistent monthly review makes open items easier to see before they age.

Reconcile payments, credits and refunds

Compare open invoices with payment confirmations and bank activity. A payment may exist but remain unmatched. A credit or refund may also change the balance without changing the original invoice total.

Investigate differences rather than editing the invoice to make the numbers fit. Record each payment or credit separately and preserve its date, amount and reason.

Build a useful follow-up list

A month-end list is more useful when it shows the next action, not only the balance. Add:

1. the person responsible for follow-up;

2. the last contact date and channel;

3. any customer response or promised payment date;

4. the next review date;

5. whether the invoice is disputed or needs professional advice.

Prioritize by due date, amount, dispute status and business impact. Do not assume that the oldest balance should always receive the strongest message.

Keep the accounting question separate

An aged invoice list is an operational control. It does not, by itself, decide whether an amount is recognized as revenue, collectible, deductible as a bad debt or taxable in a particular period. Preserve the facts and let the appropriate accounting or tax analysis happen separately.

For year-end preparation, carry unresolved invoices into year-end readiness instead of silently clearing them.

The CRA says businesses should retain records of transactions and supporting documents, including sales invoices and contracts. See its guidance on business records and general requirements for books and records.

Month-end checklist

Before completing the review, confirm that:

• every invoice in the period appears once;
• recorded payments have been matched once;
• partial payments leave the correct remainder;
• credits and refunds are documented;
• disputed invoices are identified;
• each overdue item has a responsible next step;
• the report retains the month-end cutoff date.

Frequently asked questions

Should I delete an invoice that will not be paid?

No. Preserve the invoice and its history. Any write-off, credit or legal conclusion should be documented separately and reviewed with a qualified professional.

Should an unpaid invoice be treated as missing income?

Not automatically. Whether and when an invoice affects reported income depends on the business facts and accounting method. Keep both the invoice and payment status accurate.

What if a payment arrives after month-end?

Record it using the actual payment date. The later payment should not erase the month-end evidence that the invoice was open at the cutoff.

How often should open invoices be reviewed?

Monthly is a practical baseline, with more frequent checks when payment terms are short or cash flow is sensitive. The process should follow the business's documented terms and risk.