Monthly Bookkeeping Checklist

So now you know how your bookkeeping tasks will be managed, but how much will these services cost? That depends on the size of your business, the services you want, and your provider’s rates. According to IRS Publication 15, small businesses that reported less than $50,000 or less in taxes for the last lookback period make monthly deposits. Any business that reported more than $50,000 needs to make semiweekly deposits to the IRS. You can find the reported taxes for the lookback period on line 12 of the 941 form. Here, you can follow up on customers who have outstanding invoices with you.

  • I do not file annual tax returns or offer any CPA services, but we do have a CPA we can refer you to!
  • States that have income taxes require you to pay estimated income taxes.
  • It can be a lot to handle, but you can make it easier on yourself.
  • And also evaluate your year-to-date sales to see how you are progressing toward your goals.
  • Develop the skills you need to lead a more profitable business.
  • 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.

Managing every aspect of your business can be challenging. Accounting software is a tool that can help automate and streamline your bookkeeping tasks list to save time and stress.

Record payments you receive; deposit cash and checks.

Not only does this improve cash flow, but it also makes it more manageable for your team to chase unpaid invoices. Leaving this to the end of the week or the end of the month makes it harder to keep track of what you owe, and risks late payments to your vendors. Recording your daily income and expenses in your accounts is a great way to handle this.

Monthly Bookkeeping Checklist

If you feel an accountant would be of better service to you, be aware that they will cost you more. Many small businesses hire recurring bookkeeping services and call on an accountant once in a while to make the most of their money. A bookkeeper, accountant, or combination of both are the best solutions for small business bookkeeping services. When you struggle with bookkeeping or spend too much time on it, you can’t meet your bigger goals. The solution is to hire professional bookkeeping services. With the pros doing your bookkeeping, you’ll have all the benefits of perfectly balanced books and the time to devote to growing and scaling your business. Every quarter, every business must make a quarterlypayment on payroll.

#4 W-9 Records and Information

If you sell products, you want to make sure your inventory documentation is consistently up-to-date. And that you aren’t missing any outstanding customer payments. If there’s a payment missing, send the customer a reminder of the amount due and apply any late fees as necessary.

Monthly Bookkeeping Checklist

Vishal Sanjay is a content writer with a passion for finance, business, and investments. With a background in accounting, he revels in digging deep into complex topics to create elegant and engaging articles that inspire readers to take action. His works have been published on leading sites such as ThriveGlobal, INTStaffing, SellCoursesOnline, and more. Taking stock of your company’s performance and health is essential for further planning and strategizing, so it is necessary to make sure that the data presented is accurate.

Free Template - Monthly Bookkeeping Checklist

Preparing and sending invoices every week, rather than at the end of the month, can help reduce the scale and frequency of late payments. Be sure to include a due date and payment terms to ensure clients know how and when to pay you; this will help if you have chronically slow-paying customers. Read our complete guide to accepting online invoice payments for more information about how to streamline the process.

This helps keep your cash flow calculations accurate and avoids your team chasing payments that have already been paid. A comprehensive accounting checklist and task list for your small business to complete daily, weekly and annually. At tax time, carefully review your company’s full-year financial reports before giving them to your accountant.

What’s included in small business bookkeeping services?

Other important factors include handling cash, bank, and credit card statements. In addition, there are collections and accounts receivable and payable. Do you know what your accountant or bookkeeper does every day? Yes, your bookkeeper should be keeping your books, but do you know if they’re actually spending the time you pay them for doing tasks accountants and bookkeepers do?

What questions should a bookkeeper ask a new client?

  • What can you tell us about your business?
  • What is your business entity?
  • Do you have payroll?
  • Do you have inventory?
  • How many accounts do you have?
  • Are your tax returns current?
  • Do you report sales tax?
  • Do you have any plans to expand or scale back operations?

To unlock this offer, simply enter your name and email address in the contact form below and we’ll be in touch shortly to schedule your free consultation. Given how tricky taxes can be, we always recommend hiring a professional to ensure everything is done properly. Yes, in addition to all the tax forms you’ve already filed, you’ll need to file some annual ones as well. Review any unpaid invoices and decide what action to take from there. In most cases, a simple reminder email or phone call will do the trick.

Easy Bookkeeping Checklist | Simple Monthly Bookkeeping, Bookkeeping for freelancers

With flat-rate prices starting at just $199/mo, you’ll likely find that it’s faster, easier, and cheaper to hire a professional. State income tax forms, on the other hand, are a little more nuanced.

  • A checklist makes it easy to onboard and gives them an organized list of their monthly duties.
  • A dedicated system will make it easy to find receipts and keep you up to date, so you don’t have to scramble when tax season comes around.
  • Start a suppliers file, sorted alphabetically, (Staples under “S”, Costco under “C,”etc.) for easy access.
  • The best way to reduce variances in budgets is to check for such things each month and then work toward corrective action.
  • Get up and running with free payroll setup, and enjoy free expert support.
  • Sometimes there’s a vendor that has something tricky to remember or I don’t know where it goes, so I put notes in there about that.

Stay on top of your tax filings, so they don't pile up and overwhelm you when deadlines approach. 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. It’s called open because this shows the vendor deposits that still need to be applied to your vendors’ invoices. Having this simple process and workflow in place that can evolve and be customized will save you time in the long run, minimize errors and save your firm money.

If you can’t do this task accurately and on time, you should consider working with a professional. A bookkeeper should reconcile cash, bank, and credit card statements in order to manage money from all sources. Accurate records will allow you to know where you stand financially and help make decisions in a timely manner. If you run a seasonal business, cash flow goals are even more important so you can thrive during and after peak business periods. You may need to review your forecasts if your financial statements exceed or don't meet your budget. If you don’t have a budget, comparing your current income to previous months can be a good way to prepare for the future.

  • When you were the owner of a smaller business, monthly bookkeeping may have been all you required to keep accurate financial records and projections.
  • Stay on top of your tax filings, so they don't pile up and overwhelm you when deadlines approach.
  • And that you aren’t missing any outstanding customer payments.
  • Time-saving tips to accurately record your transactions and create reports.
  • But automation cannot and will never take the place of human analysis and expertise.
  • 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.

Havingbookkeeping servicesmanaging your finances every month ensures you never get behind. This is especially important once you reach the end of the calendar year and enter tax season. You have enough to do at that time, and the last thing you need is any surprises.

Business Budget Planner Printable PDF

When closing your books at the end of the month, record any payments related to your fixed assets. Record all of the receipts for items you purchased using petty cash. Make sure your receipts and records match the balance of your petty cash fund. If it does not, chances are you are missing a transaction. Businesses perform a month-end close to keep accounting data organized and ensure all transactions for the monthly period were accounted for. As a small business owner, you may find yourself struggling to keep up with your business’s books.

Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships. A journal entry in the general journal should accompany any financial transaction made by a business. This provides a chronological record of a business’s transactions. 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.

That way, you can keep your accounts payable in tip-top shape for your monthly close. We do bookkeeping and financial reporting to help businesses reach their goals. We create budgets, manage cash flow, and help plan for upcoming events like new hires. Our team Monthly Bookkeeping Checklist is made up of bookkeeping professionals with experience managing and helping start-ups, non-profits, and small businesses. Breathe easy knowing you can trust our experienced team to keep your financials in order for yourself, your investors, and your CPAs.

One way to stay organized is by using basic accounting software to track your transactions and store your reports. 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. Bookkeeping refers to the process of organizing and recording financial transactions for a business.