monthly bookkeeping checklist

The same is true when preparing T2s based on financial information that your client has provided to you. Of course, you can still undertake a compilation engagement if it would provide value for your client. Your bookkeeper wants to see ALL your source documents pertaining to your business … They need it to ensure they have recorded your
business revenue and expenses properly. … OR buy my month end procedures eManual AND my bookkeeping checklists eBook for $22.50, a 10% savings. For instance, if your vendors offer early payment discounts, schedule the payments early to take advantage of them.

monthly bookkeeping checklist

Suppose your small business is located in any of the 45 states that collect statewide sales tax or in the District of Columbia. Although it seems pretty obvious, this task is often overlooked, which can cause unnecessary complications or emergencies if there is no available cash to spend. You want to review how much cash you need on a month-to-month basis and make at least that much available. If you have any cash-intensive plans in the coming month, you should make allowances for that as well. Additionally, be sure to update your records regularly so you can catch any errors.

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Check out this bookkeeping tip
that can reduce your overall small business bookkeeping fees. The more
organized your records, the less it costs to process them. Further up on
the same page is a box with links to more tips on how to reduce your
bookkeeping fees. The only thing bookkeepers really don’t need are your personal receipts. Personal expenses should not be going through your business accounts.

  • Adding tax filings to your monthly activities removes all that risk.
  • Here are some of the most common places to keep your bookkeeping checklist…
  • Create a payroll file sorted by payroll date and a bank statement file sorted by month.
  • These statements are prepared based on the records maintained throughout the year, and their effectiveness depends on the accuracy of those accounts.
  • Ask your vendor to fill that order and send an invoice for the purchase order so you can move the money from your asset account into COGS (Cost of Goods Sold).

The above communication requirements are a different sort of bookkeeping checklist but important all the same. With these changes, it will be important to check in with your client regularly to discuss their needs and determine the nature of the bookkeeping, tax and other services they need. An engagement letter setting out the scope of services is also a good practice.” monthly bookkeeping checklist Your accountant will need the following small business bookkeeping
information packaged in an organized fashion. Some like to keep it all
in a year end binder, others in a series of file folders. If you have all the above small business bookkeeping information
completed and with you on your first visit, your new bookkeeper should
be up and running quickly.

Weekly accounting tasks

You can also customize it to fit your firm’s needs and share it with your team members. Besides investing in useful accounting software, you can use a monthly bookkeeping checklist to ensure nothing falls through the cracks. Your team will breeze through their assignments and quickly see what’s completed. Let’s look at some tasks you can add to your monthly bookkeeping checklist that will ensure your firm is more profitable and ready for scalable growth. Transactions that occur within a business must be carefully recorded to maintain accurate financial reports and records.

Monthly bookkeeping may not be all you need as a larger business—but it’s an important part of the bookkeeping process. You’ll also receive a number of important monthly statements that help you spot any “red flags,” places where your business could be in danger or areas where you may be able to improve. The CRA collects income taxes, so be sure to review your year-to-date P&L to see if you owe any estimated taxes for that quarter. While you’re at it, identify trouble spots, and make adjustments to improve sales and margins. An efficient system for handling business finances is at the heart of every successful business, whether it is an accounting firm or any other small company. Finance planning problems make up 66% of the most common reasons for start-up failure.

Prepare and send invoices

These reports will let you know if there are any invoicing errors, incorrect transactions, or duplicate invoices you should account for. Your primary accounting tasks should focus on recording transactions. Understanding daily transactions are crucial to help you track how much cash your company has and how much it owes to others. The process of recording transactions includes logging and verifying the money going in and out of the door, as seen in the general ledger. The bookkeeping documents checklist is the acquiring of the details of both the debit and the credit card used in the business transaction whose overall particulars must be mentioned in the checklist.