Like every prudent business, at the beginning of each new month, you must reconcile your financial books and review your financial results. Generally, most businesses must report their financial results to the CEO and Board of Directors within 7 days after the month-end. They meet this deadline by following a strict closing schedule each and every month.
Accordingly, here is your closing schedule at the beginning of each month for the previous month:
1st and 2nd day of each month:
Reconcile the previous month-end balance of your recurring expenses bank account(s) with your tracking workbook for recurring expenses. Update the deposits amounts, enter any interest income, and enter the actual payments as a negative amount. Lastly, tie out your ending balance at your bank to the ending balance on your tracker.
How I reconcile my recurring expenses account monthly.
3rd to 5th day of the month:
Reconcile your credit card statements and determine from which accounts the money will be transferred from to pay the balance in full by the end of this month. This will most likely be the most difficult month-end closing activity especially if you mix your recurring and discretionary expenses on one credit card. Make sure to follow these tips to help you manage your credit card activity:
How I track and pay for my credit card activity each month.
6th day of the month:
Update your Financial Report Card aka your net worth. To measure your financial progress, you need to calculate your net worth from time to time and compare to the last month, last quarter or last year.
How to calculate your Net Worth
7th day of the month:
Review your financial results with anyone that is involved in your personal finances.