Bookkeeping Checklist for Small Businesses

monthly bookkeeping checklist

Your customer’s ability to pay and pay on time is important to your company’s financial health. Another task that should be updated monthly is vendor W-9 records and information. Employees and contractors come and go throughout the year, so it’s important to keep your records updated. This will also make it easier at the beginning of each year when you have to submit tax documents to your employees. Closing the books at the end of the period is essential to transfer the “temporary” income and expenses accounts to retained earnings. This may be done monthly or annually, so this may or may not be part of your monthly tasks. If your clients have employees, you may be completing payroll bi-weekly or monthly.

monthly bookkeeping checklist

Before moving on to anything else, you need to review the accuracy of your business cash and credit transactions in order to work with your exact cash position. To do so, reconcile your bank accounts and credit cards at the close of each month, helping you easily find and amend any mistakes. This can be done by reviewing your statements to flag any suspicious credits, debits, canceled transactions, or double charges.

Bookkeeping Checklist for Small Businesses

CompleteW-2 and 1099 paperwork, any other payroll forms that are due annually, and issue statements to employees and contractors. Reconcile your bank accounts.Check for any discrepancies between what you think you should have and what your financial account balances show. Meru accounting provides curated bookkeeping solutions specific to the clients’ needs. Don’t skip this step or your monthly books will not be correct.

Not sure how to transfer your bookkeeping to the experts? Use this guide to understand how professional bookkeeping services work and can help you. You will need in the coming weeks/months will help you reserve enough money to pay bills, including your employees and suppliers. Plus, you can make more informed business decisions about how to spend it. If you record incoming payments, you should also record outgoing payments.

The essential bookkeeping checklist for small businesses

Creating budgets for various expenses, activities and projects isn’t hard, but sticking to these budgets can be difficult. The best way to reduce variances in budgets is to check for such things each month and then work toward corrective action.

  • Let’s look at some tasks you can add to your monthly bookkeeping checklist that will ensure your firm is more profitable and ready for scalable growth.
  • It’s also a good time to review pending transactions for any errors or abnormalities, so you can investigate potential issues promptly.
  • Review and reconcile your business bank accounts and credit card accounts.
  • To stay on track, schedule a day or two at the end of each quarter to complete all your filings.
  • Address any incorrect or uncategorized transactions to ensure your net income is reported accurately.

As a business owner, you have a few more important things to handle than bookkeeping. Bookkeeping is the routine task of recording every financial transaction of the business and maintaining the books of account. Undoubtedly efficient bookkeeping is essential to track the movement of funds in and out from the firm. But monthly bookkeeping checklist doing it yourself may not always be a better option. A professional bookkeeping service like Meru Accounting is always at your service. This detailed workflow template outlines detailed monthly bookkeeping steps including weekly bookkeeping, bi-weekly payroll, gathering documents, adjustments, reports, and review.

Profit/Loss Statement

Many accounting software programs have apps that you can use to report expenses and upload receipts, so it’s easy to take care of them immediately. Rather than sort through a stack of receipts at the end of the month, just snap a picture of the receipt and jot a note about the details. At tax time, carefully review your company’s full-year financial reports before giving them to your accountant. Before you sign your return, be sure to review it for accuracy based on your full-year financial reports. If the auditer finds any underpayment of taxes, it will come to you, not your accountant, for any additional taxes, penalty and interest.

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If you have yet to establish any, consider creating weekly, monthly, and annual cash flow projections. Though you set a goal, remind yourself to monitor it weekly and adjust where necessary to keep the goal tangible. As a result, you can maintain an immediate and holistic view of your cash flow goals.

Open Vendor Deposit Report

Bookkeeping refers to the process of organizing and recording financial transactions for a business. There are several aspects of daily bookkeeping tasks. How to prioritize tasks on a monthly, quarterly, and annual basis. There are plenty of choices when it comes to accounting software. The best option will ultimately depend on budget, desired features, and ability to integrate with other business software, such as payroll or HR programs.

By the end of it, many small businesses average between $500 and $2500 a month for professional bookkeeping services. If your accounting software is connected to your bank and synced daily, there’s no need to wait for your monthly bank statement. Many accounting applications simplify reconciliation by suggesting matches, so all you have to do is review and approve them. Spending a little time on this task each day is easy and eliminates a grueling month-end chore. It’s also a good time to review pending transactions for any errors or abnormalities, so you can investigate potential issues promptly. Start a suppliers file, sorted alphabetically, (Staples under “S”, Costco under “C,”etc.) for easy access. Create a payroll file sorted by payroll date and a bank statement file sorted by month.

#2: Update Your Bookkeeping Software

Adding tax filings to your monthly activities removes all that risk. Next, If you have any past due invoices, there is no better time to send them a reminder. On the other hand, confirm that you’ve settled all your vendor invoices or reach out to them if need be. These reports will let you know if there are any invoicing errors, incorrect transactions, or duplicate invoices you should account for. Your vendors only trust you as much as you are forthcoming with your payments.

The open vendor deposit reports show which orders are yet to be filled. The checklist is easy to get started with, and ideal for helping you to scale up your business. Our checklist also includes processes to be added at different phases of growth.

If an inventory item moves slowly, remove or decrease stock of the item. If a particular material moves quickly, replenish the inventory item more regularly to keep pace with the product’s demand. Easily manage payroll, HR, and workers’ comp with Intuit Online Payroll.

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