Monthly Bookkeeping Checklist

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  • This best practice template was featured inEfficient bookkeeping workflows with Karbon and Hubdoc.
  • Needless to say, paying your employees is extremely important.
  • Taxable income to a tax return form – either Form 1120 or Form 1120, depending on your corporation structure.
  • In addition to covering small business topics for Merchant Maverick, he has experience writing about environmental issues, travel, and personal finance.
  • My client wants to record how much money each person in the firm is making, and that is tracked on the profit and loss statement.
  • Organizing financial records and receipts, keeping your financial file system up-to-date, and pulling reports when asked.

Accounts payable typically include short-term debts or payments owed to suppliers and vendors who offer services to businesses on credit. Close out the month by paying these bills and recording payment in the business’s accounting software program or general ledger. Small businesses conduct countless accounting procedures each month. In addition to managing expenses, business owners must also maintain payroll and oversee employees. Keep your books up to date monthly, quarterly, and annually to avoid overpaying on your taxes and get an accurate picture of company performance. Review these outsourced bookkeeping services tasks that can easily be completed throughout the year to keep your finances on track.

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If you need more information about any one of our checklists,email or callanyone on the Brigade Bookkeeping team. What do the owner of a mom and pop shop, a corporate tycoon and a celebrity have in common? As a business owner, you have to keep track of your company’s books orhire someonedo it for you. So did NBA basketball player,Kevin Durant, who sued his CPA for making mistakes on his taxes. We’re here to help you and share our best bookkeeping practices. A comprehensive accounting checklist and task list for your small business to complete daily, weekly and annually.

The company they bank with is a local chain and doesn’t link up to QuickBooks Online as of now. The first thing I do each month for my client is enter any checks.

What Does A Month In The Life Of A Bookkeeper Look Like? Monthly Checklist

That contains the right details such as payment terms, itemised charges, and your payment address. When I added up all the hours, it was around five hours total for the month. That is about perfect because I charge this client $250 a month, which works out to be about $50 an hour. Alternatively, I could also create a spreadsheet of these items and email it to them, especially if they are remote. When I do this task, it takes about a half hour of my time. My client is happy with the flow of things, so we haven’t transitioned to a more automated system, but because of the extra paper it is more time-intensive than it probably needs to be. Develop the skills you need to lead a more profitable business.

Monthly Bookkeeping Checklist

Please contact your financial or legal advisors for information specific to your situation. 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. I estimated the time it would take me based on the maximum amount of time it would take. Fixed-rate pricing is so much easier than an hourly rate, and this is a prime example of how it can benefit you as a bookkeeper.

Printable Business Plan, Small Business Plan

This consists of the bulk of the review, as it gives us insight into how much bookkeeping the client will need on a monthly basis. SynkBooks team will generate P&L and income statements, and will even fill out and file your tax return for you. Profit/Loss statements can be generated either quarterly or annually. How often you’ll need to generate these depends on your company structure and its related financial disclosure requirements.

Monthly Bookkeeping Checklist

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To figure out your estimated tax, you should know your expected adjusted gross income, taxable income, taxes, deductions, and credits for the year. This will help you calculate your estimated business income tax for the quarter. It tracks your actual revenue/sales, gross profit and expenses. It helps you identify areas of your business that are contributing most to your profit margin, and also helps you rectify areas where costs may need to be trimmed.

Not sure how to transfer your bookkeeping to the experts? Use this guide to understand how professional bookkeeping services work and can help you. 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. Every business should have an “unpaid suppliers” folder. Keep a record of each of your suppliers that includes billing dates, amounts due and payment due date.

Review And Reconcile Transactions

Each week, you should check-in with yourself to assess how well you’re performing in this regard. You should also try to forecast what your cash flow will look like for the following week. Regardless of how often your employees are paid, you should review and update your payroll file on a weekly basis so you can account for fluctuations, like bonuses or overtime pay.

  • A checklist can be helpful if you want to pass the bookkeeping responsibility onto someone else.
  • Closing your books monthly can also help you make decisions about your business’s finances, prevent costly mistakes, and prepare you for tax time.
  • For example, when you review your statements, you might notice that you’ve been spending a lot of money for a product that’s not selling.
  • You want a bookkeeper who is experienced in the services you need, stays up-to-date on relevant regulations and industry knowledge, and is easy to communicate with.
  • Grab my checklist for creatives that breaks down monthly, quarterly, and annual bookkeeping tasks!

If a non-bookkeeper or very junior bookkeeper has been doing the company’s books, we’ll make sure that there’s not overuse or misuse of various accounts. Quarterly estimated tax payments, your bookkeeper must keep on top of this. Even if you don’t make quarterly tax payments, you’ll still need to know your estimated tax returns for tax withheld. During the past year I have helped many new entrepreneurs and small businesses with their bookkeeping thanks to my bookkeeping spreadsheet system.

With so many responsibilities to juggle, it’s easy to let bookkeeping fall to the wayside. We start by seeing what sort of accounting system the company is currently using. Most companies use cloud-based systems like Xero, Feshbooks, Sage, QuickBooks for their bookkeeping. Some companies that are just starting out use spreadsheets. If a company is using QuickBooks, we are looking to determine the version. Many orgs use QB Desktop or Online, so we’ll note what tier they are on and whether they are on a cash or accrual basis. We will also take a look at their chart of accounts to make sure nothing seems strange or out of place.

Paperless Bookkeeping: Help Your Clients Get Rid Of Paper

Cross-referencing the books against the bank statement and other source documents to confirm accuracy or reviewing the client’s work. Closing your books monthly is essential for your business. It can show you your business’s financial information and what areas you need to improve in.

  • Between utilities, rent, and invoices from vendors, small businesses bills can accumulate quickly.
  • 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.
  • If you use petty cash or have a petty cash fund, you need to account for those at month-end, too.
  • Your employees help you run your business, so return the favor by staying on top of payroll.

This will vary by business and by location but something to keep in mind to be completed regularly. Content Snare is a great way to handle these questions without having constant email back-and-forth and ignored requests. It can be set up to when each question was answered or request completed.

Keep Your Businesss Books In Shipshape With A Month

See the daily, weekly, monthly, quarterly and annual accounting tasks that are important for all small businesses. Tasks range from categorizing bank feeds to entering checks to reconciling and sending reports to the client. Today I’m going to share with you exactly what I do each month for one of my bookkeeping clients using my own checklist. This list has been helpful for me to keep up-to-date and on track with my client’s books. This monthly bookkeeping checklist template outlines the most efficient way to complete your client’s monthly bookkeeping process. Use this template to streamline your workflow process & save time. Start earning rewards with your corporate spending today.

There are two deposit schedules for taxes, monthly and semi-weekly, and business must figure out which schedule they are required to use each year. Companies should look at Publication 15 for Forms 941, 944 and 945, or Publication 51 for Form 943. Not making these payments could lead to a failure-to-deposit penalty of up to 15%. Bookkeepers are responsible for many tasks, and in small businesses, some of those responsibilities fall on the owner, as well. Schedule time to review the monthly financial statements with your clients. And don’t assume they know everything in the financial statements as they are a small business owner, not an accountant. Work with them to add value to their business’s financial information by explaining everything to them over time, allowing them to make profitable business decisions moving forward.

Monthly Accounting Tasks

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. In order to get the transactions, you can go to the bank, select the date range you want, download it, and then you can upload it into QuickBooks from there. Normally, downloading transactions from the client’s bank account is a pretty simple task. However, this is my one client who doesn’t have that option.

Growing businesses in particular may find hiring a bookkeeper valuable so they can focus on other aspects of operations. Your profit and loss statement , both for the current month and year to date, tells you how much you earned and how much you spent. Comparing your actual numbers to your planned numbers highlights where you may be spending too much or not enough, so that you can make changes. Because of this, I reconcile my client’s savings account every other month or quarterly. One of the extra reports my client wants is a running total of all income so he can see on an overarching scale how the business is doing. 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. Use your inventory count to make adjustments and reconcile your books when you complete your end-of-the-month procedures.

Record And Categorize Expenses

Annual audits help test and assess various controls and procedures, and suggest necessary changes to improve efficiency or meet industry standards. Creating budgets for various expenses, activities and projects isn’t hard, but sticking to these budgets can be difficult. The best way to reduce variances in budgets is to check for such things each month and then work toward corrective action. Reconciling cash and receipts at the end of each day helps you discover cash shortages or overages quickly, so you can figure out where the money went and identify errors or theft. It is essential to do this every day, because it’s easier to spot discrepancies with recent transactions.

Your business will thrive and your books will always be accurate with professional small business bookkeeping services. A bookkeeper, accountant, or combination of both are the best solutions for small business bookkeeping services. First, decide which bookkeeping tasks you want to outsource and if you want a more cost-effective virtual bookkeeper or more personal local bookkeeper. Then search Monthly Bookkeeping Checklist for the type of bookkeeper you want through industry associations, bookkeeping organizations, or referrals from other small business owners. They will enter all of your information into their bookkeeping system and return any original documents you gave them. Some services, like tax preparation, may include a consulting appointment to plan ahead and help youmanage your business finances.