Monthly Bookkeeping Tasks Every Business Needs To Remember

Monthly bookkeeping tasks are essential for maintaining the financial health of your business, ensuring accurate records, and making informed decisions. Here's a list of bookkeeping tasks that your business should perform on a monthly basis:

Review Financial Statements:

• Review your income statement (profit and loss statement) to assess revenue, expenses, and profitability.
• Review your balance sheet to check the status of assets, liabilities, and equity.

Bank Reconciliation:

• Reconcile your business bank accounts, credit card statements, and other financial accounts to ensure that your records match the bank's records.

Accounts Receivable:

• Update your accounts receivable ledger by recording any outstanding invoices and tracking payments from customers.
• Follow up on overdue invoices and send reminders or statements to customers as necessary.

Accounts Payable:

• Update your accounts payable ledger to reflect any bills that need to be paid.
• Schedule payments for vendors and suppliers to avoid late fees.

Expense Tracking:

• Categorize and record all business expenses, ensuring that receipts and documentation are organized for tax purposes.

Payroll Processing:

• Process employee payroll, including salaries, wages, deductions, and taxes.
• File and remit payroll taxes to the appropriate government authorities.

Tax Withholding and Payments:

• Ensure that you are withholding and setting aside the appropriate amount of taxes for income, payroll, and sales tax.

Inventory Valuation:

• Update the value of your inventory, if applicable, to reflect changes in the quantity and cost of goods on hand.

Depreciation and Amortization:

• Account for depreciation and amortization of assets on your books‍

Financial Analysis:

• Analyze your financial statements to identify trends, areas for improvement, and opportunities for cost savings.

Budget vs. Actual Comparison:

• Compare your actual financial performance with your budget to assess whether you're on track and to identify variances.

Bank Statements and Credit Card Statements:

• Review your bank and credit card statements to identify any discrepancies or unauthorized transactions.

Cash Flow Analysis:

• Assess your cash flow to understand how money is coming in and going out of your business. Make adjustments to improve cash flow if necessary.

Reconciliation of Loan and Credit Accounts:

• Reconcile any loans or lines of credit to ensure that the balances match your records.

Record Non-Operating Income and Expenses:

• Include any investment income, interest income, or other non-operating income and expenses in your records.

Retain Documentation:

• Keep all financial documentation, receipts, and records organized for audit purposes and tax compliance.

Quarterly and Annual Filings:

• Prepare any required quarterly filings, such as sales tax or estimated tax payments.
• Plan for year-end tasks, including tax preparation and annual financial statements.

Review and Adjust Chart of Accounts:

• Periodically review and adjust your chart of accounts to ensure it accurately reflects your business's financial activities.

Completing these monthly bookkeeping tasks will help you maintain accurate financial records, improve decision-making, and stay compliant with tax and financial regulations. If you're not experienced in bookkeeping, consider working with a professional accountant or using accounting software to streamline these processes and reduce the risk of errors.

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