Monthly Bookkeeping Checklist Remote Quality Bookkeeping

Or, you might have forgotten to record the used petty cash in your books. So, how can you simplify your responsibility of closing your books monthly? Say goodbye to disorganized books and hello to a month-end closing procedure. It’s nice to track this monthly to see what’s working and any growth.

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.

Understanding taxes and deductions

This is also a good time to re-evaluate your collections process to see if it is effective or whether any changes need to be made. Small business owners need to have cash flow goals, but they have to be achievable. Also, there is nothing wrong with adjusting those goals to meet the current business climate. Please note that if you don’t collect sales tax or fail to pay it, you may be penalized with interests, or your property may be seized, both of which will affect your credit score.

• Financial Cents also gives you a great overview of all client work and projects so you never miss another deadline.
• Are the tasks in the Monthly Bookkeeping Checklist Template accurate?
• Before we jump into the essential bookkeeping checklist for small business owners, let’s quickly touch on why it’s so important to have a bookkeeping checklist in the first place.
• Here are some of the most common places to keep your bookkeeping checklist…
• Make sure to send email reminders to customers who are yet to pay by the invoice due date, or you can also call customers directly for an update.
• With so many responsibilities to juggle, it’s easy to let bookkeeping fall to the wayside.

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.

Review and reconcile transactions.

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.

• Take this time to also evaluate and make decisions about what services/products did better or worse.
• If you find your business making these same mistakes get working on change or prepare to have your lunch eaten!
• Once you track the approved expenses, print and send out reimbursement checks.
• Suppose your small business is located in any of the 45 states that collect statewide sales tax or in the District of Columbia.
• All vendor invoices should be paid once per week instead of monthly.

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.

Month End Checklist

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.

Bookkeeping software and systems should be able to identify potential tax deductions and make any procedure related to reporting and filing taxes as seamless as possible. Managing income and expenses closely and in a structured format will make it much easier to prepare taxes—whether independently or with a tax preparer. While the process of matching your bank balance to your bookkeeping records may be cumbersome, it’s an important protocol that will help you spot any errors or fraud.

Bookkeeping Checklist for Small 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.

You want to review how much cash you need on a month-to-month basis and make at least that much available. If you have any cash-intensive plans in the coming month, you should make allowances for that as well. With so many tasks competing for your attention, it can be especially difficult to maintain your quality of work.

Get the step-by-step checklist for completing your client’s monthly bookkeeping process.

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.