Bookkeeping, reconciliations and monthly close

What a monthly close involves

We record sales, purchases, receipts, payments and adjustments under an agreed chart of accounts. Capital purchases, deposits, loans and owner transactions are identified separately so they do not distort operating income or expenses. Month-end accruals and prepaid costs are supported by schedules, with assumptions visible where a final bill has not arrived.

Reconciliation compares the ledger with evidence outside that ledger. The bank balance is matched to statements; customer and supplier balances are matched to invoices, notes and settlements. Payroll cost is checked against the approved register. GST balances are reconciled to the records, with tax treatment reviewed by our GST team or your existing return preparer.

For a marketplace or payment gateway, the bank deposit is usually a net settlement. We separately account for underlying sales, refunds, platform charges, deductions and amounts still receivable. Posting the net deposit as revenue would conceal those differences.

The records and outputs

Provide statements for every bank and payment account, issued invoices, supplier bills, expense claims, payroll summaries, loans and unusual transactions. The opening balances and previous accountant’s schedules are also needed when we take over an existing file.

You receive a trial balance, bank reconciliations, receivable and payable ageing, and a monthly exception list. We also maintain the fixed-asset register, depreciation schedule, stock reconciliation and supporting month-end journals where relevant to your business. Each open item records the amount, evidence needed and person responsible.

A trial balance balancing arithmetically does not prove that every entry is correct or complete. That is why the supporting reconciliations and unresolved-items note accompany it. Where records remain incomplete, the close pack identifies the affected balances rather than describing the month as fully settled.

Establish a workable handover

At the start we review a representative month, the software, chart of accounts and transaction volumes. We agree a document cut-off, query response date and target close date. These operating dates should leave enough time for the returns or management reports that depend on the books.

If earlier months need reconstruction, we separate the opening clean-up from the ongoing monthly service. We can then maintain current records while resolving the older differences in a documented sequence. Historic entries are corrected with a reason and supporting record, preserving the required accounting trail.

For GST records, the rules require appropriate books and supporting detail, including traceability of changes in electronic records. Record retention and access should be designed into the handover arrangement. CGST Rules, rule 56.

Organising the monthly work

Transaction count, number of banks and sales channels, stock complexity, payroll inputs and the quality of source records determine the monthly effort. Review of another accountant’s completed entries is different from full transaction entry. Our team handles software migration, old-period reconstruction and tax returns where required, with each workstream and handover recorded. Any audit appointment must meet the applicable independence requirements.

We agree the delivery format and who holds the accounting file and supporting documents. A business should be able to retrieve the invoice or reconciliation behind a reported balance without depending on one person’s memory.

Questions about the monthly accounts

Can you work with our current accountant? Yes. They may continue daily entry while we review reconciliations and month-end schedules, or retain the review role while we enter transactions. The responsibility split is written before work starts.

Do incomplete bills mean the work must wait? We can organise available records and identify gaps. Unsupported entries and estimates remain visible for resolution; they are not treated as final facts.

Can you handle tax returns too? Yes. Our tax team uses the books, reviews eligibility and adjustments, prepares and files returns after your approval, and follows up queries. We can also provide the schedules to your existing tax adviser.

What changes at year-end? The year-end team receives monthly schedules, supporting documents and an open-item history. Audit adjustments and final tax treatment still need review; monthly bookkeeping is not an audit opinion.

Related services include monthly management reporting, GST credit reconciliation and retained finance advice.

Email TheTaxCo, message us on WhatsApp or book a call. Share your accounting software, approximate monthly transaction count, number of bank accounts and the last month for which books are complete.