The Monthly Bookkeeping Checklist Every Small Business Needs

Keeping your books current doesn't have to be overwhelming. A consistent month-end routine is the single best way to keep your finances accurate and avoid a scramble at tax time.

1. Reconcile every bank and credit card account

Match each transaction in your accounting software to your statements. Reconciling monthly catches duplicate charges, missed deposits, and errors while they're still easy to fix.

2. Categorize all transactions

Make sure every expense and deposit is assigned to the right account. Consistent categories make your reports meaningful and help ensure you capture every deductible expense.

3. Collect and attach receipts

Store digital copies of receipts and invoices alongside the transactions they support. Good documentation saves time if you're ever asked to substantiate an expense.

4. Review accounts receivable

Look at who owes you money and how long invoices have been outstanding. Following up early on overdue invoices protects your cash flow.

5. Review accounts payable

Know what bills are coming due so you can plan payments and avoid late fees.

6. Check payroll and contractor payments

Confirm payroll entries, tax withholdings, and payments to contractors are recorded correctly. Tracking contractor payments throughout the year makes year-end 1099 reporting much easier.

7. Review your financial statements

Take a few minutes with your profit and loss statement and balance sheet. Compare this month to last month and to the same month last year. Unexpected changes are worth a closer look.

The bottom line

A monthly routine turns bookkeeping from a dreaded chore into a tool for better decisions. If you'd rather spend that time running your business, Naulty & Co. can handle it for you.