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Monthly Bookkeeping: Understanding the Tasks Involved


monthly bookkeeping checklist

States that have income taxes require you to pay estimated income taxes. Review your year-to-date P&L to see if you owe any estimated taxes for that quarter. If you have inventory, set aside time to reorder products that sell quickly and identify others that are moving slowly and may have to be marked down or, ultimately, written off. By checking regularly (and comparing to prior months’ numbers), it’s easier to make adjustments so you are neither short nor overloaded. Every business should have an “unpaid suppliers” folder. Keep a record of each of your suppliers that includes billing dates, amounts due and payment due date. If suppliers offer discounts for early payment, you may want to take advantage of that if you have the cash available.

Dig a bit deeper and find out why that is if you’re seeing a change that you didn’t anticipate. If you have employees to pay, at least you’re not going it alone. Your employees help you run your business, so return the favor by staying on top of payroll. Show up for them in this way, and they’ll continue to grow your business.

Review Inventory

You want to know the fiscal health and standing of your small business. Of course, your accountant will ensure that your return is error-free, but you should review it, so you know your business position and where you’re going. Time-saving tips monthly bookkeeping checklist to accurately record your transactions and create reports. If you are looking for an easier way to implement this template in your firm and share it with your team try our accounting workflow management solution, Financial Cents, for free.

monthly bookkeeping checklist

You can change the dates, view month by month or quarter by quarter. You can even compare year to year to see how your business is growing. It’s nice to track this monthly to see what’s working and any growth. This can also tell you what’s not working which is equally important.

Questions to Ask Yourself about the Top 10 Monthly Bookkeeping Checklist

Small business owners who recently opened their doors may feel inexperienced with the operational tasks involving bookkeeping. Quickly, they understand that running a company involves more than selling products or services, growing your client base, and increasing revenue. For those inexperienced with accounting duties, we are here to help. Below, we discuss the basics of creating a monthly bookkeeping checklist tailored to your business by exploring eight of the most important accounting tasks. Every month, your bookkeeper should be recording the company’s revenue, expenses, profit, and loss.

monthly bookkeeping checklist

Your collections process and records need to be reviewed and updated every month. Maintenance of this process will help you continue to strive to collect all money your company is due.

Analyse Inventory Status

An introduction to learning how to read your financial statements and evaluate the information to uncover your business’s financial health, problems, and potential outlook. Collect any outstanding debts and close out your books. If you have any open invoices or outstanding debts, you’ll want to collect them before year-end. Once you’ve collected any outstanding payments, you can close out your books for the year. Depending on your state, you may also be required to pay quarterly sales taxes.

In addition to managing expenses, business owners must also maintain payroll and oversee employees. Bookkeeping tasks can be done via accounting software, applications like Microsoft Excel, or the old-fashioned way in a ledger. You’ll need the full scope of a business’s financial information to do bookkeeping tasks. This includes bank statements, invoices, receipts, tax forms, and other records. Keep your books up to date monthly, quarterly, and annually to avoid overpaying on your taxes and get an accurate picture of company performance.

#3: Review Customer and Vendor Invoices

In most cases, a simple reminder email or phone call will do the trick. In other cases, it might be time to contact a collections agency. Inventory items are raw materials that can be sold for cash. Manage inventory each month to determine which business materials should be reduced and which materials should be increased.

  • Bookkeeping gives you important visibility over the health of your business’ finances.
  • Preparation and sending of the invoice at the right time.
  • On the other hand, confirm that you’ve settled all your vendor invoices or reach out to them if need be.
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  • Prepare quarterly payroll formsand make quarterly tax payments.
  • Therefore, regularly review all vendor invoices and accounts to ensure that you are up-to-date on all payments.