Monthly Bookkeeping Checklist for Small Businesses

Introduction

Keeping your business finances organized throughout the year is essential for accurate tax preparation, informed decision-making, and financial health. But without a system, it's easy to fall behind on bookkeeping tasks.

This monthly bookkeeping checklist provides a clear framework for staying on top of your finances every month. Follow these steps to keep your Texas business financially organized and tax-ready all year long.

Weekly Bookkeeping Tasks

1. Categorize New Transactions

Review and categorize new transactions in QuickBooks at least once a week. This prevents a backlog of uncategorized transactions that make month-end reconciliation difficult.

• Review downloaded bank and credit card transactions
• Assign each transaction to the correct account category
• Split transactions that span multiple categories
• Add receipts and documentation

2. Send Invoices

Send invoices promptly for goods or services delivered. The faster you invoice, the faster you get paid.

• Create and send invoices in QuickBooks
• Set up automatic invoice reminders for overdue accounts
• Follow up on past-due invoices

3. Record Bills and Expenses

Enter bills as they arrive so you have an accurate picture of what you owe.

• Record bills in QuickBooks
• Schedule payments to avoid late fees
• Track recurring expenses

4. Check Cash Flow

Review your cash position weekly to ensure you have enough funds to cover upcoming expenses.

• Review bank account balances
• Identify upcoming large expenses
• Plan for tax payments

Monthly Bookkeeping Checklist

1. Reconcile Bank and Credit Card Accounts

Reconciliation is the most important monthly bookkeeping task. Compare your QuickBooks records to your bank and credit card statements.

• Reconcile each bank account
• Reconcile each credit card account
• Investigate and resolve any discrepancies
• Confirm the ending balance matches your bank statement

Learn more about how often you should reconcile QuickBooks.

2. Review Accounts Receivable

Check on outstanding invoices and follow up with customers who haven't paid.

• Generate an A/R aging report
• Identify overdue invoices (30, 60, 90+ days)
• Send payment reminders to customers
• Write off uncollectible accounts if necessary

3. Review Accounts Payable

Make sure you're paying your bills on time and taking advantage of early payment discounts.

• Generate an A/P aging report
• Identify upcoming bills due
• Schedule payments to avoid late fees
• Review recurring subscriptions for unused services

4. Review and Categorize Payroll

Ensure payroll is recorded correctly and payroll taxes are accurate.

• Record payroll transactions in QuickBooks
• Verify payroll tax withholdings
• Reconcile payroll liabilities
• File quarterly payroll tax returns (if applicable)

5. Generate Financial Reports

Review your monthly financial reports to understand your business's financial health.

• Generate a Profit & Loss statement
• Generate a Balance Sheet
• Generate a Cash Flow statement
• Compare actual results to budget
• Review for unusual or unexpected transactions

6. Review Sales Tax

If you collect sales tax, ensure it's recorded correctly and set aside for payment.

• Review sales tax collected
• Set aside funds for sales tax payment
• File monthly or quarterly sales tax returns

7. Review Inventory

If you carry inventory, verify your inventory records match physical counts.

• Conduct a physical inventory count (or cycle count)
• Adjust QuickBooks inventory for discrepancies
• Identify slow-moving or obsolete inventory
• Reorder inventory as needed

8. Back Up Your Data

Ensure your financial data is backed up and secure.

• Verify QuickBooks Online backups (automatic with cloud)
• Back up any local financial files
• Store backups in a secure, off-site location

Quarterly Bookkeeping Tasks

1. Review Estimated Tax Payments

If you pay quarterly estimated taxes, calculate and make payments on time.

• Calculate quarterly estimated tax payments
• Make payments by the deadline (April 15, June 15, September 15, January 15)
• Set aside funds for tax payments throughout the quarter

2. Review Financial Performance

Take a step back and review your business's financial performance for the quarter.

• Compare quarterly results to prior quarters
• Review year-to-date performance vs. budget
• Identify trends and areas for improvement
• Adjust your budget if needed

3. Conduct a Bookkeeping Review

Review your bookkeeping system to ensure everything is running smoothly.

• Review Chart of Accounts for accuracy
• Check for miscategorized transactions
• Ensure all accounts are reconciled
• Review for duplicate transactions

Annual Bookkeeping Tasks

1. Year-End Reconciliation

Complete a final reconciliation of all accounts for the year.

• Reconcile all bank and credit card accounts for December
• Review all accounts for accuracy
• Close the books for the year

2. Prepare for Tax Season

Organize your financial records for tax preparation.

• Generate year-end financial reports
• Provide records to your CPA or tax preparer
• Review for any missing documentation
• File 1099s for contractors (due January 31)

3. Review Your Bookkeeping System

Evaluate your bookkeeping processes and make improvements for the new year.

• Review your Chart of Accounts
• Update vendor and customer information
• Review and update budgets
• Consider upgrading your accounting software or services

How Professional Bookkeeping Services Help

If managing this checklist feels overwhelming, professional bookkeeping services can handle it for you. Our Certified QuickBooks Monthly Bookkeeping service includes:

• Monthly transaction categorization
• Bank reconciliation
• Credit card reconciliation
• Monthly Profit & Loss
• Monthly Balance Sheet
• Quarterly bookkeeping review
• Email bookkeeping support
• Tax-ready financials

Services are provided by our Certified QuickBooks Bookkeepers, Enrolled Agents (EAs), and CPA partners.

Key Takeaways

• Weekly tasks include categorizing transactions, sending invoices, recording bills, and checking cash flow
• Monthly tasks include reconciliation, A/R and A/P review, financial reports, and sales tax review
• Quarterly tasks include estimated tax payments and financial performance review
• Annual tasks include year-end reconciliation and tax season preparation
• Professional bookkeeping services can handle these tasks for you
• Our monthly bookkeeping service is $300/month and includes all monthly tasks

Need Professional Help?

Don't have time for monthly bookkeeping? Start monthly bookkeeping with our Certified QuickBooks Bookkeepers for $300/month. We handle transaction categorization, reconciliation, financial reports, and tax-ready financials so you can focus on running your business.

Learn more about QuickBooks setup and the difference between bookkeeping and CPA services to understand how professional financial services can support your business.