A small-business month-end review turns daily records into a controlled set of open and completed items. The process helps the owner catch missing evidence, duplicate entries and unexplained balances while the month is still recent.

It is a record-quality review, not a tax filing or accounting certification.

Step 1: Set the cutoff

Choose the Business and exact month. Confirm the bank and card statement dates that cover the period. Keep transactions after the cutoff in the later period, even if they relate to an earlier invoice.

Open monthly review and record who is responsible for the review.

Step 2: Review income and receivables

Check sales and other income for a date, amount and source. Review issued invoices, payments, credits, refunds and open customer balances.

Look specifically for:

• deposits with no supporting record;
• invoice payments recorded again as income;
• partial payments with the wrong remaining balance;
• voided or disputed invoices still treated as open;
• cash income with incomplete evidence.

Step 3: Review expenses and evidence

Scan expenses for duplicates, missing receipts, unclear suppliers, personal items and records assigned to the wrong Business. Open attachments rather than relying on the filename.

Use receipt capture to connect evidence to the expense. If evidence is missing, flag it and assign follow-up instead of inventing details.

Step 4: Reconcile accounts

Compare bank and card statements with the records. Use bank statement matching to match existing transactions. Separate internal transfers, owner contributions and repayments from income and expenses.

Keep a dated list of unmatched lines and differences.

Step 5: Review special workflows

Check:

• owner-paid expenses and remaining repayment balances;
• contractor bills and payment proof;
• business trips, mileage and vehicle odometers;
• recurring expenses and invoices;
• accountant requests and unresolved support items.

Each item should belong to one Business and retain its source evidence.

Step 6: Document exceptions

Create a short exception register with the issue, amount, evidence, owner and next review date. Distinguish missing evidence from uncertain accounting treatment. Those are different problems and may require different people.

High-value, recurring or tax-sensitive exceptions should be raised promptly with the accountant.

Step 7: Complete and preserve the review

Record the review date, reviewer and unresolved items. Later corrections should append to the audit history rather than silently changing what was reviewed.

A consistent monthly process reduces the year-end search. Carry unresolved items into year-end readiness so they do not disappear between periods.

The CRA requires businesses to keep organized records and supporting source documents. Its guidance recognizes paper and electronic records and emphasizes sufficient detail and audit trails. See Keeping records and Business records.

Frequently asked questions

How long should a month-end review take?

It depends on transaction volume and unresolved items. A consistent weekly capture process usually makes month-end faster than collecting evidence at year-end.

Should the month be locked permanently?

Corrections may still be needed. The important control is a traceable change with the reason, date and reviewer, not an irreversible screen state.

Who should perform the review?

The owner or an authorized team member can complete the operational checklist. Accounting and tax decisions should be reviewed by the appropriate professional.

Does a completed review guarantee accurate financial statements?

No. It shows that the checklist was performed and exceptions were disclosed. It is not an audit, assurance engagement or certification.