Monthly Bookkeeping Checklist for Businesses

This can also tell you what’s not working which is equally important. Alternatively, something might not be selling like you thought it would. Either it’s time to remove it from your offerings or work on a better marketing plan to get it to sell. If you’ve been doing this weekly, you most likely have most of this complete and this step should be simple and easy.

This means every transaction- from your bank accounts to credit cards to PayPal and Shopify. All cash, bank, and credit card accounts should be reconciled on a monthly basis to ensure that your financial status is an accurate portrayal of your business. One important part of the process is to go back and look at the undeposited funds from the previous month to see if they cleared during the current month. Keeping your books up-to-date is essential if you want to run a successful business. Most of your money is probably coming from credit card sales and ACH transfers.

Monthly Bookkeeping Checklist for Businesses

By following these tips, you can create a monthly bookkeeping checklist that will help you stay organized and on top of your finances. Setting up and managing payroll is often part of the bookkeeping process in a small business. Some businesses use separate payroll software, which can connect or integrate into any bookkeeping or accounting software system. After tracking your transactions, record them in your books at the end of each week or month. During your monthly close, cross-check your records to make sure you paid all bills and invoices.

• As a bookkeeper, there is no shortage of tasks, and overlooking just one can bite you later on down the road.
• And don’t assume they know everything in the financial statements as they are a small business owner, not an accountant.
• Check for anything that doesn’t match so you can make sure you’re not missing records.
• A big part of not letting anything slip through the cracks is updating your bookkeeping software.
• If you don’t feel like you have enough time to dedicate to your bookkeeping, see if Alloy Silverstein’s Small Business Services division has a solution for you.
• This can also tell you what’s not working which is equally important.

And for your staff performing bookkeeping, consistency is another goal that can be hard to reach. For those of you who still need to upgrade to a digital document management system, review our guide on how to implement paper-free bookkeeping. If you start missing payroll or processing things late, you could have significant problems. Avantax affiliated advisors may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state. There are many resources to help you manage bookkeeping for your small business.

Sample Bookkeeping Documents Checklist

We also offer a number of integrations with accounting, merchant services, and peer-to-peer payment platforms to help you seamlessly manage your business finances. As your business grows, you might wish to hire either a full-time or part-time, in-house or outsourced bookkeeper to organize transactions, payroll, payments to vendors, and other tasks. Businesses also need to pay bills and invoices on time, known as accounts payable. Strong accounts receivable and accounts payable management are critical to managing the business to ensure an uninterrupted flow of capital both in and out of the company. On your calendar, plan out when you’re going to collect reports, record transactions, and close your books. Establish a closing date by which all expenses and income must be posted.

A checklist allows you to break down each task and see how each can be improved, simplified, automated or delegated. Perhaps a monthly task can be done way more efficiently using software or utilizing features of your existing software. Find out how long each task is taking you or your team each month, and find solutions to reduce that. Furthermore, failing to collect sales tax from a client could be to your detriment. As a seller, if you fail to collect and/or pay a sales tax, the tax authorities will assess penalties and interest if they determine an amount unpaid. They can ultimately take assets or put liens on them, which negatively impacts your credit.

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Before paying bills, check your account balances and outstanding checks to confirm you have funds available. Some businesses might be more complicated and law firm bookkeeping need more time or have more steps involved. Remember, if you dread this monthly task and have the revenue to support it, then it’s time to outsource.