- Strata Management Support Ltd
- Jan 24
- 3 min read
As a small business owner, funding a full-time qualified accountant isn’t always value for money, and many companies manage their bookkeeping and accounting without professional expertise. Therefore, the month-end close may not even be a process you have considered, have knowledge of, or fully understand.
You don’t have to be a number wizard to take control of your finances. A clear system will help you stay on top of your business’s performance, avoid surprises, and make informed decisions.
Here are some practical tips tailored to small business owners.
1. Create a Simple Month-End Checklist
Start with a straightforward checklist to guide you through the process. Having a list ensures you won’t miss any crucial steps. Have a look at our handy checklist here.
2. Reconcile Your Bank Accounts
Make it a priority to reconcile your bank accounts with your records. This step ensures that every transaction is accounted for and highlights any discrepancies. Most accounting software can make this easier.
3. Track Your Cash Flow
Knowing where your money is coming from and where it’s going is essential for small businesses. Review your cash flow at month-end to ensure you have enough to cover upcoming expenses. If cash flow is tight, consider ways to improve it, such as chasing late payments or negotiating better payment terms with suppliers.
4. Set Aside Time for Bookkeeping
Allocate dedicated time each month to focus on your bookkeeping. Treat it like an important appointment. Doing this regularly will prevent the workload from piling up and help you stay organised.
5. Leverage User-Friendly Tools
If you’re handling everything yourself, using small business-friendly accounting software (like Xero) can save time and reduce errors. Look for tools that offer bank feeds, invoice tracking, and simple reporting features to support your month-end process.
6. Understand Your Numbers
Consult a professional for guidance to review your financial reports, such as your profit and loss statement and balance sheet. They will look for trends, such as rising expenses or slowing sales, and consider how they impact your business.
7. Stay on Top of Tax Deadlines
Month-end is a great time to review your tax obligations. Set aside money for VAT, income tax, or corporation tax, so you’re not caught off guard when payments are due. Keeping up with your records throughout the year will make tax time much easier.
8. Keep It Simple
You don’t need to do everything a large business does. Focus on the basics: ensure your records are accurate, understand your cash flow, and prepare for upcoming obligations. Overcomplicating your process can make it harder to stay consistent.
Final Thoughts
Managing your own month-end process as a small business owner can feel overwhelming at first, especially if you naturally shy away from numbers. With a clear plan and the right tools, it can not only be manageable, but extremely useful for when making strategic and operational decisions. By staying organised and dedicating time each month to your finances, you’ll gain valuable insights to help your business thrive.
For more tips on month-end closing and financial management, contact us today to learn how we can help streamline your financial operations.
Strata Management Support Ltd
Accountants & Business Performance Advisors
01926 217 640
Frequently Asked Questions about Month-End Processes
What is a month-end process?
The month-end process involves finalising a company's accounting records for the month, including reconciling accounts and preparing management reports.
Why is the month-end process important?
A structured month-end process ensures accurate financial reporting, helps identify variances, and provides insights into a company’s financial health, which supports better decision-making.
How can I improve my month-end process?
Key strategies include creating a month-end checklist, automating repetitive tasks and reconciling accounts early.
