# Small Business Bookkeeping Monthly Checklist

Keeping your books up‑to‑date each month prevents costly errors, saves time at tax season, and gives you clear insight into your business health. Use this printable checklist to stay on track, delegate tasks confidently, and maintain accurate financial records.

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## 1️⃣ Record All Transactions  

- [ ] Enter all sales invoices into the accounting software (date, client, amount, tax).  
- [ ] Record all purchase receipts and bills (date, vendor, category, tax).  
- [ ] Reconcile cash register/till totals with POS reports.  
- [ ] Log all credit card transactions and fees.  
- [ ] Capture any cash receipts or disbursements in a daily cash log.  
- [ ] Attach digital copies of receipts to each entry.  
- [ ] Verify that all foreign currency transactions are recorded at the correct exchange rate.  
> 💡 **Tip:** Set a recurring daily reminder (e.g., 4 PM) to enter transactions before the day ends.

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## 2️⃣ Reconcile Bank & Credit Card Statements  

- [ ] Import the latest bank statement into your bookkeeping system.  
- [ ] Match each bank line item to recorded transactions; flag any mismatches.  
- [ ] Reconcile credit card statements, including interest and fees.  
- [ ] Identify and resolve outstanding checks or deposits in transit.  
- [ ] Adjust for bank service charges or automatic payments not yet recorded.  
- [ ] Document any unreconciled items and set a follow‑up date.  
> 💡 **Tip:** Use the “bank rules” feature in your software to auto‑categorize recurring transactions.

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## 3️⃣ Review Accounts Receivable & Payable  

- [ ] Generate an Accounts Receivable aging report.  
- [ ] Follow up on invoices > 30 days overdue (email or call).  
- [ ] Write off any truly uncollectible debts after proper documentation.  
- [ ] Generate an Accounts Payable aging report.  
- [ ] Schedule payments for invoices due within the next 10 days to avoid late fees.  
- [ ] Confirm that any early‑payment discounts are applied correctly.  
- [ ] Update vendor contact information if needed.  
> 💡 **Tip:** Automate payment reminders for clients using your invoicing platform.

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## 4️⃣ Payroll & Employee Expenses  

- [ ] Verify that all employee hours are entered and approved.  
- [ ] Process payroll and record wages, taxes, and deductions.  
- [ ] Reconcile payroll register with bank payroll disbursement.  
- [ ] Review expense reports; ensure receipts are attached and categories are correct.  
- [ ] Reimburse approved employee expenses and record the transactions.  
- [ ] Update accrued vacation, sick leave, and other liabilities.  
- [ ] File payroll tax filings (e.g., Form 941, state payroll reports) if due this month.  
> 💡 **Tip:** Run a “Payroll Summary” report and compare it to the prior month to spot anomalies.

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## 5️⃣ Tax & Compliance Checks  

- [ ] Verify sales tax collected matches sales tax payable; remit if required.  
- [ ] Confirm estimated income tax payments are scheduled (quarterly).  
- [ ] Review depreciation schedules for any new assets purchased.  
- [ ] Update fixed‑asset register with acquisitions or disposals.  
- [ ] Ensure any industry‑specific licenses/fees are paid and documented.  
- [ ] Backup all tax‑related documents to a secure cloud folder.  
> 💡 **Tip:** Set calendar alerts for upcoming tax deadlines well in advance.

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## 6️⃣ Financial Reporting & Analysis  

- [ ] Generate a Profit & Loss (Income Statement) for the month.  
- [ ] Generate a Balance Sheet and compare to the previous month.  
- [ ] Review key ratios (gross margin, net profit margin, current ratio).  
- [ ] Update cash flow forecast with actual inflows/outflows.  
- [ ] Highlight any budget variances > 5 % and investigate causes.  
- [ ] Share the month‑end financial package with stakeholders (PDF or dashboard).  
- [ ] Archive the month’s reports in a labeled folder for easy retrieval.  
> 💡 **Tip:** Use visual dashboards (e.g., charts) to make trends instantly understandable.

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## 7️⃣ Backup & Security  

- [ ] Export a full backup of the accounting database (local and cloud).  
- [ ] Verify that backup files are accessible and not corrupted.  
- [ ] Review user access permissions; remove any former employees or contractors.  
- [ ] Enable two‑factor authentication for all accounting software accounts.  
- [ ] Document any changes to accounting policies or procedures.  
- [ ] Conduct a quick audit of password strength and update if needed.  
> 💡 **Tip:** Schedule an automated weekly backup to reduce manual effort.

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## How to use this checklist  

1. **Print or save** the checklist as a PDF and keep it in a dedicated “Monthly Bookkeeping” folder.  
2. **Assign responsibilities** – designate team members for each section (e.g., office manager for bank reconciliation, payroll admin for payroll).  
3. **Set calendar reminders** for the start and mid‑month to complete each phase.  
4. **Mark items as completed** directly on the printed sheet or in a digital task manager (e.g., Asana, Trello).  
5. **Review the completed checklist** with your accountant or bookkeeper during the monthly review meeting.  
6. **Adjust** the list annually to reflect changes in your business (new software, additional compliance requirements, etc.).  

By following this checklist each month, you’ll maintain clean books, stay compliant, and gain the financial clarity needed to grow your business confidently. Happy bookkeeping!