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The Top 10 Monthly Bookkeeping Checklist for Your Bookkeeper

By Reema Rajani, founder of Adcon Business Solutions

Blue Bookkeeping Binder with a mobile phone on the Adcon Monthly Bookkeeping blog

Every company, no matter the size, needs a monthly bookkeeping checklist to make sure everything is getting done and on time. Accurate and timely Monthly Bookkeeping is necessary to keep your business running smoothly. And your bookkeeping is crucial when it comes to applying for financing and doing taxes. Inaccurate and missing bookkeeping can lead to disaster! If you can’t afford a full-time employee to manage your bookkeeping needs, hire an experienced, professional bookkeeper.

Monthly Bookkeeping

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.

Bookkeeping word bubble in blue and yellow on the Adcon Monthly Bookkeeping blog

#7 Record and Prepare Sales Tax Returns

Tax compliance is essential to your business. It requires correct communication and documentation. Monthly, quarterly, and annual sales tax returns should be filed with the state(s) where you do business.

#8 Record, Complete, and Issue Payroll

Needless to say, paying your employees is extremely important. But it goes beyond issuing the payments because the records need to support the payments. Every month, your bookkeeper should record, complete, and issue payroll. We know this is often a time-consuming task. If you can’t do this task accurately and on time, you should consider working with a professional.

#9 Review Accounts Payable, Receivables Report, and Balance Sheet

Recording and preparing these statements are important, but they should also be thoroughly reviewed. These make up the financial health of your business. What trends may be affecting how your business functions? Are your receivables suffering? Are you spending too much money? A thorough review can help you identify things before they become problems.

#10 Review Reports for Open Vendor Deposit, Aged Accounts Receivable, Open Client Deposit Report, and the Work in Process (WIP) Report

That’s a long list of reports, and it’s time-consuming to keep up and review! But the review gives you the best way to evaluate your business status and trends that may have an influence on your business’s future.

A. First, the Open Vendor Deposit Report

It’s called open because this shows the vendor deposits that still need to be applied to your vendors’ invoices.

B. Second is Your Accounts Receivable Aging Report

It is simply your accounts receivables report sorted by the length of time each invoice has been outstanding. Your customer’s ability to pay and pay on time is important to your company’s financial health.

C. Third is The Open Client Deposit Report

It is called open because this shows your client deposits that still need to be applied to your clients’ invoices.

D. Last, The Work in Process, also known as the WIP Report

The WIP Report is vitally important to the real profitability of your company. It is the life-cycle of your contracts. It goes from “not started” contracts, to work-in-progress to completed. This report helps you understand your company’s performance. It is especially important in construction, manufacturing, and wholesale businesses.

Questions to Ask Yourself about the Top 10 Monthly Bookkeeping Checklist

Now that we’ve given you the Monthly Bookkeeping Checklist, find out if all of these things are getting done every month. Are they accurate? Who is responsible to make sure they are getting completed? Are you getting copies to review?

If you can’t do these yourself or can’t afford to hire a full-time employee, consider hiring a professional bookkeeper. This will save you lots of time and money. It could also save you from problems related to your taxes and the IRS.

Adcon Business Solutions specializes in Monthly Bookkeeping

Adcon Business Solutions will assist in managing expenses, transactions, and record keeping in order to help your business operate smoothly. With over 20 years of experience, Reema and her team at Adcon Business Solutions are trusted by dozens of businesses to advise, assist, and design effective accounting solutions.  We do this throughout Orange County, Inland Empire, LA County, San Bernardino, and the surrounding areas of California.  Reema and her team can help you navigate your bookkeeping needs as you steer towards a successful future.

Reach out to Adcon Business Solutions today! Our team has the expertise required to help you with your Bookkeeping. (714) 369-5859 or (909) 896-8005

Reema Rajani

Reema is the founder of Adcon Business Solutions. She has spent over 20 years helping businesses with their accounting and bookkeeping needs. Reema is a QuickBooks® Certified Pro Advisor. She has the experience and knowledge in Cash Flow Management, Payroll Processes, Sales Tax, Account Reconciliation/IRS representation, and Budgeting to help your business.

Adcon Business Solutions, Inc.

Adcon Business Solutions, Inc provides services in:

Adcon Business Solutions provides onsite service to the following areas of California: Inland Empire, Orange County, LA County, San Bernardino, and surrounding areas. And we also provide remote services to clients within the US.

To learn more about our services, give us a call today at (714) 369-5859 or (909) 896-8005!

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