Bookkeeping

Monthly Bookkeeping: Understanding the Tasks Involved

monthly bookkeeping checklist

Then search for the type of bookkeeper you want through industry associations, bookkeeping organizations, or referrals from other small business owners. Accurate and punctual financial tracking, including reconciling accounts, running reports, paying bills, debt collection, and data entry. As a small business owner, there are many ways to grow your business, but all of them require plenty of time and energy to meet your goals. However, it’s easy to get distracted by all the daily tasks that keep your business running behind the scenes. If you’re not using cloud-based accounting software that automatically backs up your data, make sure to back up your financial data manually at least once a month.

What are the 3 things you want to know most in bookkeeping?

  • Cash: The account where all business transactions pass.
  • Accounts Receivable: If your business sells products or services and you don't collect money immediately, then you have receivables.
  • Inventory: The account where you account for all of the products you have in stock.

This task hasn’t been done in the past few months for this client because we don’t discuss them every month that we meet. I want to be respectful of their time, and it’s more efficient just to do a whole bunch of them at once. The first thing I do each month for my client is enter any checks. It’s important to do this first so we can match what feeds into the bank account. This client works off paper checks, so every month I will pick up the check stubs and enter them into QuickBooks. I’ve found that it works well to have a written log of each task I need to complete for each client. I created a checklist that works effectively for me to log the necessary items I need to remember.

Time Tracking & Invoicing

Keep track of routine journal entries and calculations done in the previous month to speed up this process each month. If your clients have employees, you may be completing payroll bi-weekly or monthly. This may also be outsourced and need to be imported into the financials. Either way, this will need to be completed and payroll deductions monthly bookkeeping checklist submitted. Imagine having a clear checklist of the tasks you need to complete every month for your clients. Each task can be delegated or automated, saving time and money for your firm. One of the benefits of using a payroll provider is that they will handle any 1099-MISC forms or W-2s, so you’re covered on that front.

  • I’ve found that it works well to have a written log of each task I need to complete for each client.
  • Cross-referencing the books against the bank statement and other source documents to confirm accuracy or reviewing the client’s work.
  • If payment is significantly late and a reminder has already been sent, following up more frequently may be merited.
  • You’ll need the full scope of a business’s financial information to do bookkeeping tasks.
  • Every quarter, you’ll have to pay a variety of quarterly employment taxes, including federal unemployment , state unemployment , and any applicable local taxes.
  • Conduct a monthly review of payroll records and cross check for any discrepancies or errors.

Depending on your employee structure, you’ll need to file IRS Form W-2 and Form 1099-NEC each year. You’ll also need to send copies to your employees/contractors. Every quarter, you’ll have to pay a variety of quarterly employment taxes, including federal unemployment , state unemployment , and any applicable local taxes.

Key Monthly Bookkeeping Tasks to Include in Your Checklist

By reviewing your forecasted cash flow for the month, quarter, or even the year, you can prepare ahead of time for the months in which activity decreases. As a result, your business will plan to save the excess earnings from busier months during the height of your business to offset any financial shortcomings of your off-season. Failing to do so could cause a great rift in your finances. Is the fundamental responsibility of a bookkeeper at the end of the fiscal year.

monthly bookkeeping checklist

One of the questions I get a lot from other bookkeepers starting out is how much to charge clients. If there are only a few transactions, it is easy, yes, but the things don’t necessarily fit in.

Review and reconcile transactions.

A bookkeeper, accountant, or combination of both are the best solutions for small business bookkeeping services. 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. Reviewing this report helps ensure that the bills you entered throughout the month are accurate and paid in a timely manner. By doing so, you protect your credit and business reputation.

  • When I added up all the hours, it was around five hours total for the month.
  • Perhaps a monthly task can be done way more efficiently using software or utilizing features of your existing software.
  • SynkBooks team will generate P&L and income statements, and will even fill out and file your tax return for you.
  • The WIP Report is vitally important to the real profitability of your company.
  • You can download 32 workflow templates here for free – it includes a bookkeeping checklist template that will make accounting easier for you going forward.

Go through these steps to make sure all transactions are in your books through the end of the month. Since you only do this task 12 times a year it’s not as frequent as others and you might forget what needs to be done especially in the beginning. That’s why I’ve provided a handy checklist to go along with this post. Improper management https://www.bookstime.com/ or ignorance can cause significant loss to the organizations. Sparing a little time from the busy schedule often seems hectic, however, having a checklist with you will provide your great assistance. The good news is that as a fixed-rate client, if I get these tasks done in a shorter amount of time, I’m making a higher hourly rate.