Every month, your bookkeeper should be recording the company’s revenue, expenses, profit, and loss. Other important factors include handling cash, bank, and credit card statements. In addition, there are collections and accounts receivable and payable. Reconcile all vendor reports on a monthly basis.
Running a business is time-consuming, so we want to make sure you know the types of bookkeeping that should be performed each and every month. The main two keywords are Record and Review!
#1 Record Revenue and Expenses
Your company needs to record revenue and expenses each month to accurately know your financial status. A profit and loss statement shows your bottom line and operating expenses, and it needs to be assessed every month.
#2 Reconcile Your Records
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.
#3 Record Credit Cards Transactions
As part of your Monthly Bookkeeping Checklist, your bookkeeper should also record individual credit card purchases and revenue transactions. This is important because they will be part of your tax documents. Most qualified business expenses are tax-deductible. And, if you take payments via credit card, they are documented as business revenue.
#4 W-9 Records and Information
Another task that should be updated monthly is vendor W-9 records and information. Employees and contractors come and go throughout the year, so it’s important to keep your records updated. This will also make it easier at the beginning of each year when you have to submit tax documents to your employees.
#5 Collections as part of Your Monthly Bookkeeping Checklist
Your collections process and records need to be reviewed and updated every month. It’s easy to get busy and forget about collections. Is your collections process working? How much money is outstanding? Do you have customers who are regularly late paying? Maintenance of this process will help you continue to strive to collect all money your company is due.
#6 Prepare Financial Statements
This goes beyond profit and loss statements. Updated and accurate financial statements include balance sheets, income statements, and cash flow statements. In addition, statements of shareholders’ equity – if applicable.