# Small Business Bookkeeping Monthly Checklist

A well‑organized bookkeeping routine keeps your finances accurate, simplifies tax time, and gives you confidence to make strategic decisions. Use this printable checklist at the end of each month to verify that every essential task is completed, documented, and filed.

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## 1️⃣ Record All Transactions  

- [ ] Enter all bank deposits and withdrawals into the accounting software.  
- [ ] Reconcile each business bank account to the statement (including savings, credit cards, and PayPal).  
- [ ] Record all cash sales and cash expenses in the cash journal.  
- [ ] Post all credit card transactions and match them to receipts.  
- [ ] Capture and categorize every incoming invoice (vendor, utilities, rent, etc.).  
- [ ] Log all outgoing invoices and sales receipts; verify customer details and amounts.  
- [ ] Allocate any loan disbursements or repayments to the correct liability accounts.  
- [ ] Update inventory adjustments (shrinkage, returns, purchases).  

> 💡 **Tip:** Set up automated bank feeds where possible to reduce manual entry and errors.

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## 2️⃣ Review & Reconcile Accounts  

- [ ] Perform a month‑end bank reconciliation for each account.  
- [ ] Reconcile credit‑card statements to the expense ledger.  
- [ ] Verify that accounts receivable aging matches outstanding invoices.  
- [ ] Review accounts payable aging; ensure no overdue vendor bills.  
- [ ] Check that payroll liabilities (taxes, benefits) match payroll reports.  
- [ ] Reconcile inter‑company transfers or owner draws to the equity accounts.  

> 💡 **Tip:** Flag any discrepancies > $25 for immediate investigation to avoid compounding errors.

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## 3️⃣ Payroll & Employee Expenses  

- [ ] Run payroll and confirm net pay, taxes, and deductions are correct.  
- [ ] Record employer payroll tax liabilities and remit to the appropriate agencies.  
- [ ] Enter employee expense reports and attach receipts.  
- [ ] Reimburse approved employee expenses and record the transactions.  
- [ ] Update accrued vacation, sick leave, and other PTO balances.  
- [ ] Verify that contractor 1099‑NEC information is captured for year‑end filing.  

> 💡 **Tip:** Use a separate “Payroll Expenses” account to keep payroll costs distinct from other operating expenses.

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## 4️⃣ Financial Statements & Analysis  

- [ ] Generate the Income Statement (Profit & Loss) for the month.  
- [ ] Generate the Balance Sheet as of month‑end.  
- [ ] Produce a Cash Flow Statement (operating, investing, financing).  
- [ ] Compare actual results to the budget/forecast; note significant variances (>5%).  
- [ ] Calculate key ratios (gross margin, net profit margin, current ratio).  
- [ ] Update any management dashboards or KPI trackers.  

> 💡 **Tip:** Highlight any variance trends over three months to spot emerging issues early.

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## 5️⃣ Tax & Regulatory Compliance  

- [ ] Verify sales tax collected matches sales tax due; file/prepare for filing.  
- [ ] Check estimated quarterly tax payments; adjust if needed for next quarter.  
- [ ] Review payroll tax deposits and filings (e.g., Form 941, state payroll).  
- [ ] Ensure all required business licenses and permits are current.  
- [ ] Update depreciation schedules for new assets.  
- [ ] Back‑up all tax‑related documents in a secure, cloud‑based folder.  

> 💡 **Tip:** Set calendar reminders for upcoming filing deadlines to avoid penalties.

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## 6️⃣ Documentation & Backup  

- [ ] Scan and file all receipts, invoices, and bank statements in the digital archive.  
- [ ] Store physical copies in a fire‑proof safe for at least 7 years (as required).  
- [ ] Export a backup of the accounting database and store it off‑site.  
- [ ] Review and update the chart of accounts for any new expense categories.  
- [ ] Confirm that all user permissions in the accounting software are appropriate.  
- [ ] Archive the month‑end financial reports in a labeled folder (e.g., “2024‑06 Reports”).  

> 💡 **Tip:** Use a consistent naming convention like `YYYY-MM_CompanyName_DocType` for easy retrieval.

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## 7️⃣ Planning & Review  

- [ ] Meet with the business owner/manager to discuss the month’s financial performance.  
- [ ] Identify cost‑saving opportunities or revenue‑boosting ideas.  
- [ ] Adjust the cash flow forecast for the next month based on actuals.  
- [ ] Set goals for the upcoming month (e.g., reduce expense category X by 10%).  
- [ ] Schedule any upcoming major purchases or investments in the budget.  
- [ ] Document action items and assign owners with due dates.  

> 💡 **Tip:** Keep a running “Financial Improvement Log” to track progress on recurring initiatives.

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## How to use this checklist  

1. **Print or save** this list at the start of each month.  
2. **Assign responsibility** – designate who handles each section (e.g., bookkeeper, office manager).  
3. **Work through the items** sequentially; tick the box only after the task is fully completed and documented.  
4. **Address any flagged issues** immediately—use the notes column on the printed sheet for details.  
5. **File the completed checklist** with the month’s financial records as proof of compliance.  
6. **Review the checklist quarterly** to add, remove, or refine tasks as your business evolves.  

Consistent use of this checklist will keep your books accurate, reduce stress at tax time, and provide the financial clarity needed for growth. Happy bookkeeping!