A simple monthly close routine: bank reconciliation, receivables and payables review, GST input credit match with GSTR-2B, TDS, accruals and reports — with a 10-step checklist.
Each month, match every bank transaction to your books, explain the differences (uncleared cheques, charges, interest), review receivables and payables, match purchase invoices with GSTR-2B before claiming input tax credit, and only then generate the P&L and balance sheet.
Bank reconciliation catches missed entries, duplicate payments, unexplained charges and fraud early. It is also the foundation of reliable GST and income-tax figures, because most business receipts and payments pass through the bank.
| Item | In books? | In bank? | Action |
|---|---|---|---|
| Cheque issued, not yet presented | Yes | No | Carry forward |
| Bank charges / interest | No | Yes | Record in books |
| Direct customer deposit | No | Yes | Identify customer and record receipt |
| Duplicate entry | Twice | Once | Reverse the duplicate |
A profitable month can still leave you short of cash if customers have not paid. Read the P&L together with receivables and cash flow.
Senior contributor at Taxpex Consultancy. Reviewed by a practising Chartered Accountant. Published on 16 October 2026 · Updated on 16 October 2026.
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Missing an instalment usually attracts a small penalty (₹1–₹2 per ₹100/month) and may reduce final maturity.
via RD CalculatorCGST + SGST applies for intra-state supplies (supplier and place of supply in same state). IGST applies for inter-state and imports.
via GST CalculatorWhen a supplier gives you a GST-inclusive price and you need to break it into base + GST for invoicing or ITC reconciliation.
via Reverse GST CalculatorYes — including marketplace settlements (Amazon, Flipkart, Shopify) and TCS reconciliation.
via Accounting & Bookkeeping