Bookkeeping For Dummies Cheat Sheet Australia New Zealand Edition Article

Monthly Bookkeeping Checklist

I do periodically meet with this client, and sometimes we tackle these questions at that meet up. As a bookkeeper you don’t always have to do it that way, but it is best practice to enter checks before they show up in the bank feeds. Along the top of the spreadsheet are the months so I can easily see and check off that I’ve done everything I needed to that month for my client.

  • Your customer’s ability to pay and pay on time is important to your company’s financial health.
  • Adding tax filings to your monthly activities removes all that risk.
  • Invest in a good bookkeeping or accounting software program.
  • You may choose to do this weekly or bi-weekly if cash flow is a particular concern for your business.
  • The good news is that there is a pretty easy workaround to the task if your client’s bank account doesn’t hook up to QuickBooks either.

But you should back-up the data you’re storing in the cloud onto a desktop hard drive on a monthly-basis. Stay top-of-mind with your customers – Consider sending a monthly newsletter to your customers and prospects. It’s a way for you to provide them with free content and stay on their mind. Analyze your sales data – Compare your monthly sales to the same months in previous years to understand how your business is performing. And also evaluate your year-to-date sales to see how you are progressing toward your goals.

Stay up to date to meet tax deadlines

With so many tasks competing for your attention, it can be especially difficult to maintain your quality of work. And for your staff performing bookkeeping, consistency is another goal that can be hard to reach. Jocelyn Ho is the founder of Newlance Consulting, a digital marketing consultancy in Paris. She’s also a regular contributor to Spendesk as a part-time member of the marketing team. Even with a calculator close to hand, a few shortcuts to help you calculate Goods and Services Tax are real handy. The whole business of dividing by 11 or multiplying by 0.15 can get very ugly indeed. By checking this box, you agree to the Terms of Use and Privacy Policy & to receive electronic communications from, which may include marketing promotions, news and updates.

Monthly Bookkeeping Checklist

The most important part of running a small business is knowing how much cash you have every day. If you don’t have time, your bookkeeper should be informing you how much you have in your account and any incoming or outgoing money daily.

Small businesses must keep thorough payroll records that include the hours worked, wages earned, deductions and net pay of each employee. Conduct a monthly review of payroll records and cross check for any discrepancies or errors. Report federal and state payroll taxes withheld from the employee’s wages along with taxes that are the business’s responsibility such as federal unemployment tax. Many small business owners start out doing their bookkeeping themselves, so those tasks get mixed in with everything else you do.

Count inventory

It takes the guesswork out of bookkeeping so you can focus on running your business. Often, small businesses keep a monthly bookkeeping checklist as many bookkeeping tasks need to be completed every month. But it’s also useful to have a daily bookkeeping checklist too along with an annual one. 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. First, they take a time consuming task off your plate so you can maximize your time and energy on your passion.

Cross-referencing the books against the bank statement and other source documents to confirm accuracy or reviewing the client’s work. As soon as you receive payments from customers, record them immediately in your bookkeeping software. This task keeps you from making the mistake of contacting customers who have already paid you for the same invoice. It also helps you keep track of the payments you’ve received.

( Bookkeeping Checklist & Task List to Complete for Every Business

Say goodbye to disorganized books and hello to a month-end closing procedure. When computing your profit and loss, you’ll want to do so on both an individual level and for your business as a whole.

Monthly Bookkeeping Checklist

Financial health of your organization – and is a key metric for shareholders to review at the end of every quarter. Understand where your business is spending and receiving funds, and gives you a better overview of your financial health. At the end of your financial year, you will be looking at this account again to determine what receivables you will need to send to collections or write off for a deduction. To understand the financial health of your business, you need to…

A Monthly Checklist for a Small Business

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  • If you need more information about any one of our checklists,email or callanyone on the Brigade Bookkeeping team.
  • Put together the team that will lead your practice to success.
  • If you use petty cash or have a petty cash fund, you need to account for those at month-end, too.
  • If you can’t do this task accurately and on time, you should consider working with a professional.
  • Lindsay is in charge of the Sales and Marketing team at Design Manager and has enjoyed growing the DM company for the past 10 years.

Take stock of what you currently have on hand so you know exactly how much product you have available and the cash value of that inventory. “CEF is helping hundreds of new businesses create thousands of new jobs, which helps communities in our state to thrive.”

Profit/Loss Statement

For instance, if your vendors offer early payment discounts, schedule the payments early to take advantage of them. Otherwise, set payment reminders so you can pay your bills on time and avoid late fees. Keeping track of inventory on a daily basis also reduces theft or loss of merchandise.

  • By simply logging into an online bank portal, businesses can compare the bank account balance against their book balance as frequently as they want.
  • I’ll handle all of your bookkeeping and you’ll receive a monthly summary email from me.
  • Ask your vendor to fill that order and send an invoice for the purchase order so you can move the money from your asset account into COGS .
  • Your vendors only trust you as much as you are forthcoming with your payments.
  • It’s easy to lose track of customer invoices when you don’t have a set schedule for sending them.
  • Annual services like tax preparation can be several hundred dollars paid once a year.

Rita is known for her dependability, commitment, and honesty. If you do not have another person you can ask to review your information, double and triple check your own work to ensure the information is accurate. Before you go, we want to present you with a special offer for reading our article. For a limited time only, we’re offering a complimentary consultation plus three FREE months of QuickBooks Online when you sign up for our services.

Not only are you the CEO, you’re also the head of marketing, finance, sales, customer service, and human resources. With so many responsibilities to juggle, it’s easy to let bookkeeping fall to the wayside. Record any payments and deposit cash and checks.You’ll save a lot of time and hassle if you use a business bank account with mobile deposit features.

Is becoming a certified bookkeeper worth it?

However, if you're just starting out in bookkeeping, or if you're trying to set yourself apart from other bookkeepers, the various bookkeeping or technology certifications may be very worth your while as they might enable you to charge more, market your services more effectively, and, in fact, do a better job given …

You’ve invested a lot into your business, and you want to hire someone who will also be a valuable investment. Monthly Bookkeeping Checklist If you do not have your bookkeeping under control, you caneasily face penaltiesor lose vital funds.

That’s what’s great about this business being completely virtual! For any clients not in the area, I use Zoom for consultations and meetings.

Payroll management software can help tremendously with this, and most of the major options integrate with leading accounting software apps like QuickBooks and Xero. There are even free payroll apps that can help you with basic tasks. The more tasks you automate, the easier your weekly bookkeeping will be. When customers pay your invoices, recording the payment receipts as soon as possible is a great practice.

Review your current inventory to determine the value of items not sold. Any write-down of inventory translates to a deduction on your year-end taxes. If you do not write down unsellable inventory, you are overstating your inventory balance and paying additional taxes that you don’t owe. 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. 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.

Monthly Bookkeeping Checklist

I can set up a consultation to review your books and decide what will best suit your business. To compare your petty cash fund to your records, physically count the leftover cash in your fund.

The duration of bookkeeping tasks depends on the nature of business operations and size. For instance, a business with numerous daily transactions (e.g., retail) may have more bookkeeping to do than a company with a smaller list of clients (e.g. consulting firm). Monitoring your accounts receivable will let you know if and when you’ll need to send a reminder for any remaining past due invoices. Contacting customers and clients once a month is reasonable for the initial reminder. If payment is significantly late and a reminder has already been sent, following up more frequently may be merited.

That’s why even the best-prepared finance teams need great tools. Spend management software like Spendesk lets you collect employee receipts automatically and reconcile payments in minutes, not days. Grab my checklist for creatives that breaks down monthly, quarterly, and annual bookkeeping tasks! Just enter your email below to receive an email to download the checklist. During your month-end close process, you need to reconcile all of your accounts.

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