Why your month end review is the best gift you can give your business
Have you ever had one of those days where you have twenty tabs open on your computer, a half-finished cup of coffee on your desk, and a nagging feeling that you've forgotten something important? For many small business owners, that’s exactly what bookkeeping feels like by the time the end of the month rolls around.
Your books should be a source of confidence, not another "tab" left open in the back of your mind. That’s why I advocate for a monthly review — a dedicated time to pause, look back at the last month, and ensure every transaction is in its right home.
What is a month end review?
Think of month end review as a status update for your business's health. It should be an intentional window of time where you step away from the "doing" of your business to focus on the "well-being" of your business.
While it involves practical steps, like making sure your bank statement matches what you see in QBO, the real goal is clarity. It’s your opportunity to ensure every dollar you earned and spent is accounted for, categorized correctly, and working toward your goals.
The hidden value in the numbers
When you take the time to review your month, you aren't just doing admin. You’re gaining three powerful insights:
1. A clear view of your profit
It is easy to celebrate a high revenue month, but revenue isn't what you take home. By reviewing your expenses, you can see if your costs are creeping up or if that subscription you forgot to cancel is still nibbling at your margins.
2. Tax season readiness
Imagine if March and April weren't stressful. By reviewing your books every single month, you are essentially doing your year-end taxes in small, bite-sized pieces. When tax time rolls around, you won't be hunting for receipts; you'll be ready to go.
3. Strategic confidence
Numbers tell a story. Maybe you'll notice that your income peaks when you post a certain type of content, or perhaps you'll see that a specific service is costing you more in time and materials than it’s worth. This data gives you permission to pivot, grow, or simplify.
How to get started (the simple way)
You don't need a degree in accounting to master your month end. Here’s a simple checklist to get you started:
Reconcile your accounts: Ensure your bank and credit card statements match your QBO records.
Check for "uncategorized" items: Look through your transactions and make sure everything is assigned to a specific category.
Review your profit and loss statement: Look at your total income versus your total expenses. Does it feel right? Try drilling down into the transactions that make up each income and expense account to make sure they are categorized appropriately.
Celebrate a win: Find one thing in your numbers that went well this month. Maybe you lowered your insurance expense, or maybe you hit a new revenue goal!
We’re here to support you
If the thought of opening QBO still feels overwhelming, remember that you don't have to do this alone. My mission at Open Book is to provide you with the tools and guides to make this process simple and approachable.
When you understand your books, you OWN your business. And there is nothing more satisfying than leading your business with confidence.
Like checking boxes? Get a free month end review checklist here.
