What should I check before closing the books each month?

A simple month-end checklist for a small business:

1. Bank and cash: reconcile every bank account to the statement and make sure the cash balance in the books matches the physical cash.
2. Sales and purchases: confirm all invoices, bills, credit notes and debit notes for the month are entered, and follow up on unpaid or overdue ones.
3. Expenses and accruals: record expenses incurred but not yet billed or paid, and adjust prepaid items.
4. Tax ledgers: check that GST input and output, TDS and TCS balances agree with your returns and challans, and that TDS deducted has been deposited.
5. Payroll: make sure salary, PF and ESI entries are booked.
6. Stock and fixed assets: compare closing stock with a physical count where you can, and post depreciation if you do it monthly.
7. Final review: scan the trial balance for unusual or negative balances and clear suspense entries before locking the period.

Your CA can tell you which of these matter most for your business.