This task keeps you from making the mistake of contacting customers who have already paid you for the same invoice. Fixed monthly bookkeeping checklist assets are items that are generally large purchases that lose value over time, however, add value to your business.
Be sure that accruals and prepaid expenses are recorded accurately in your books. Chances are, you probably don’t have time to record transactions every day. If this is the case, make sure you write down your purchases and organize receipts. That way, you can keep your accounts payable in tip-top shape for your monthly close. Monitoring your accounts receivable will let you know if and when you’ll need to send a reminder for any remaining past due invoices. Contacting customers and clients once a month is reasonable for the initial reminder.
By Reema Rajani, founder of Adcon Business Solutions
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. In this post, we’ll look at why you need a checklist and provide a list of functions bookkeepers complete to close their clients’ books monthly and how to streamline each step. Want to be at the top of your bookkeeping game all year long and equip your employees with the right tools? You can download 32 workflow templates here for free – it includes a bookkeeping checklist template that will make accounting easier for you going forward. As soon as you receive payments from customers, record them immediately in your bookkeeping software.
- Although there are some pressures and stresses not found at the typical hourly job, for me, the benefits far outweigh the risks.
- Again, you may be required to keep this document on file depending on your business structure.
- SynkBooks team will generate P&L and income statements, and will even fill out and file your tax return for you.
- The end of the financial quarter is always a hectic time for any small business.
- We do this throughout Orange County, Inland Empire, LA County, San Bernardino, and the surrounding areas of California.
- These payroll filings and payments are due on the last day of the month after the quarter ends.
- Some reports are advantageous to run on a weekly basis, while others can be done monthly.
When you own a small business, you don’t just create the product or service. You’re also the head of product development, lead salesman, the VP of Marketing, the customer service department, the administrative assistant, as well as the CEO. This juggling act can be difficult at times, which is why it’s important to have a system to keep everything straight. A journal entry in the general journal should accompany any financial transaction made by a business. This provides a chronological record of a business’s transactions. These statements are prepared based on the records maintained throughout the year, and their effectiveness depends on the accuracy of those accounts. There is also the issue of unauthorized overtime pay – if an employee works more than 40 hours a week, you can be held liable to pay for overtime even if you haven’t authorized it.
#4 W-9 Records and Information
Reema and her team can help you navigate your bookkeeping needs as you steer towards a successful future. The WIP Report is vitally important to the real profitability of your company. It goes from “not started” contracts, to work-in-progress to completed. It is especially important in construction, manufacturing, and wholesale businesses. Your collections process and records need to be reviewed and updated every month. Maintenance of this process will help you continue to strive to collect all money your company is due.
- The company they bank with is a local chain and doesn’t link up to QuickBooks Online as of now.
- Not sure whether to hire an accountant or keep your bookkeeping to DIY?
- While accounting software generally comes at a cost, it can help a business’s long-term success by providing financial insights in real-time and ensuring tax compliance.
- If you don’t have a budget, comparing your current income to previous months can be a good way to prepare for the future.
- Please note that if you don’t collect sales tax or fail to pay it, you may be penalized with interests, or your property may be seized, both of which will affect your credit score.
Some inventory may need to be monitored more than others; however, all inventory needs to be tracked in order to prevent any kind of inventory shrinkage. Inventory shrinkage, even in small amounts, can affect the profitability of a business. Every quarter, every business must make https://www.bookstime.com/ a quarterlypayment on payroll. These payments are due the last day of the month after a quarter ends. Your bookkeeper or accountant should use IRS Form 941 and your own state’s filings to make these payments. That way, you’re not scrambling at month-end looking for documents.