Also, there is nothing wrong with adjusting those goals to meet the current business climate. A big part of not letting anything slip through the cracks is updating your bookkeeping software. It can only help you as much as you keep it updated with all possible aspects of your monthly finances. A solution like Jetpack Workflow will generate more accurate reports with more useful information. Track spending promptly, and stick to a schedule — Pick a day of the week for writing checks, and stick to it. Cash flow is integral, and most business owners let this get lost in the shuffle.
Unlike your P&L, the numbers on your balance sheet get carried forward. This means that your balances consider everything from the conception of your business to now. Join over 1 million businesses scanning receipts, creating expense reports, and reclaiming multiple hours every week—with Shoeboxed. Make sure that all vendor W-9 records and information are up-to-date. Since contractors and employees come and go, if you keep all of their information updated on a monthly basis, then it will be so much easier when it comes time to submit tax documents.
What is Bookkeeping?
Remember, any inventory write-off equals a deduction on your year-end taxes. If you don’t write off inventory that no longer has value, you are overstating your inventory law firm bookkeeping balance and paying additional taxes that you don’t owe. Take this time to also evaluate and make decisions about what services/products did better or worse.
By optimizing your bookkeeping practices, you can identify areas where expenses can be reduced or eliminated altogether. Similarly, by improving procurement procedures, you can negotiate better deals with suppliers or find more cost-effective alternatives. Next, contact any vendors or clients you have done business with over the past year. They can provide you with a printout list of each transaction or invoice between you. It can show you your business’s financial information and what areas you need to improve in. Closing your books monthly can also help you make decisions about your business’s finances, prevent costly mistakes, and prepare you for tax time.
Deliver consistent, excellent work that drives client satisfaction and referrals:
If you have any cash-intensive plans in the coming month, you should make allowances for that as well. 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. For those of you who still need to upgrade to a digital document management system, review our guide on how to implement paper-free bookkeeping.
Be sure that accruals and prepaid expenses are recorded accurately in your books. Your accounting software will keep track of past due invoices, as long you prepared them through your accounting software. You can even automatically email customers with outstanding invoices through your account. You would just select when you would like the reminder sent (i.e. 7 days past due) and your software will automatically send the email reminder for you.
Monthly Bookkeeping Checklist Template FAQs
Once everything is entered and reconciled, you can see the financial health of your business. Now is the time to prepare any necessary journal entries such as accruals, deferrals, prepaid expenses, and depreciation. It is essential to create schedules for these items to ensure the amount of each entry is accurate, such as a listing for fixed assets. All additions and disposals will need to be identified and tracked in your record depreciation expense. Keep track of routine journal entries and calculations done in the previous month to speed up this process each month. While staying current with customer invoices is crucial, reviewing your own invoices with vendors is equally imperative.