1. Agree the period, owner and reporting basis.
Write down the period being prepared and the accounts, businesses and sales channels included. Confirm who collects information, who checks it and who reviews the final pack. A named handover makes it easier to distinguish a completed task from one waiting for a decision.
Agree the reporting basis and any adjustment requirements with your accountant. Keep a record of the reports used and the date they were downloaded. If a report changes later, retain the replacement and explain which version supports the final figures.
2. Collect the records before chasing differences.
Create one period folder with a simple index. Separate source documents from working schedules and final reports so someone else can retrace the process. Check coverage, rather than assuming that a file with the right month in its name contains the whole period.
- Statements for every bank, card and relevant payment account.
- Sales records, supplier documents and credit notes.
- Marketplace settlement and fee reports for the channels in scope.
- Approved payroll information and any stock records needed for the reporting process.
3. Reconcile the accounts and follow the differences.
Compare each account’s statement with the corresponding records. Review both the closing balance and the items making up any difference. A matching total alone does not establish that every transaction has been recorded correctly.
Look for duplicates, omitted entries, transfers counted twice and transactions matched to the wrong document. For each unresolved item, record the amount, date, source reference and investigation needed. Keep the original evidence alongside any proposed correction and route changes through the agreed review.
4. Make outstanding customer and supplier items usable.
Read the customer and supplier lists as working documents. Identify invoices that need a status update, receipts waiting to be matched and bills awaiting approval. Check apparent old balances against correspondence before assuming they are still collectible or payable.
Separate a missing document from a disputed amount or a proposed payment. They need different actions. Any payment list should identify the approver and remain distinct from evidence that money has actually been released.
5. Gather the explanations the report will need.
Review significant changes from the previous period and collect the explanation while the detail is still available. Separate confirmed changes from questions requiring investigation. If payroll, stock or another input is incomplete, identify the affected reporting area.
Provide supporting information for adjustments your accountant needs to assess, rather than adding an unexplained amount to make a result look reasonable. Keep management expectations, estimates and recorded activity distinguishable in the working papers.
6. Hand over a short status summary.
The recipient should be able to see what is ready and what still needs attention without reopening every file. Summarise the reporting period, completed checks, outstanding questions and the location of the supporting schedules.
- Completed: checked balances and reports ready for review.
- Outstanding: the question, supporting reference and person needed to resolve it.
- Decisions: proposed actions requiring an owner or accountant’s approval.
- Next cycle: one practical process change that would prevent repeated chasing.
7. Retain the reviewed pack and carry actions forward.
Save the reviewed reports and supporting schedules as a clearly identified version. When something changes afterwards, record the change and its reason. Carry unresolved actions into the next cycle with their original context, rather than copying an unexplained balance or starting the investigation again.