Monthly finance routines · 6 minute read
A monthly close turns everyday transactions into a consistent picture of your business. This is a suggested management routine, not a list of statutory monthly filing requirements. Your actual filing and remittance schedules depend on your accounts and circumstances.
Collect the complete month’s records
- Bank, credit card, and loan statements.
- Sales invoices, purchase invoices, and supporting receipts.
- Point-of-sale, ecommerce, and payment processor reports.
- Payroll reports and details of owner-paid business costs.
- Details of new equipment, financing, refunds, and unusual transactions.
Reconcile the accounts
Match each bank and credit card account to its statement. Reconcile payment clearing accounts and investigate outstanding items. For businesses with several sales channels, confirm that the channel reports and processor settlements explain the deposits. Avoid clearing differences with unexplained adjustments.
Review customers and suppliers
Check overdue customer balances, upcoming supplier payments, credits, and duplicate entries. Decide who will follow up and when. A profitable month can still create a cash squeeze when customers pay late or suppliers need payment sooner.
Review payroll and tax balances
Compare payroll reports with the accounting entries and payments. Review GST/HST collected and recorded on purchases, and investigate unusual balances. Maintain a separate calendar for the filing and payment dates that apply to your business; a monthly review does not mean every return is due monthly.
Make the reports useful
Compare results with the previous month and year-to-date expectations. Ask which costs changed, whether gross margins make sense, and whether cash commitments are covered. For inventory businesses, assess the reliability of inventory and cost-of-sales information before relying on margin reports.
Finish with a short owner review
- What changed this month?
- What explains the change?
- Which balances or documents still need follow-up?
- What decisions or payments are coming next?
Agree on a realistic close date, responsible person, and reporting package. Consistency is more useful than a complex dashboard built on incomplete records.
Explore monthly finance support
Further reading: CRA: Keeping records. Published October 5, 2026. General information; adapt this checklist to your business.