# Small Business Bookkeeping Monthly Checklist

A well‑organized bookkeeping routine keeps your finances accurate, saves time, and protects you during tax season. Use this printable checklist at the end of each month to verify that every critical task is completed, documented, and backed up.

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## 1️⃣ Record All Transactions  

- [ ] Enter every sales receipt (cash, credit, online) into the accounting software.  
- [ ] Log all purchase invoices and expense receipts, categorizing them correctly (e.g., Office Supplies, Marketing).  
- [ ] Reconcile bank deposits with recorded sales.  
- [ ] Record any cash withdrawals or petty‑cash expenses.  
- [ ] Post payroll entries (gross wages, taxes, benefits).  
- [ ] Update accounts receivable (AR) aging report with new invoices and payments received.  
- [ ] Update accounts payable (AP) aging report with new bills and payments made.  
- [ ] Enter any loan or credit‑line activity (draws, repayments, interest).  

> 💡 **Tip:** Set up automatic bank feeds in your accounting software to reduce manual entry and catch missing transactions instantly.

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## 2️⃣ Reconcile Bank & Credit Card Statements  

- [ ] Download the month‑end bank statement (PDF or CSV).  
- [ ] Match each line item to recorded transactions; flag any discrepancies.  
- [ ] Reconcile credit‑card statements the same way.  
- [ ] Investigate and resolve outstanding items (e.g., outstanding checks, bank fees).  
- [ ] Adjust for any bank service charges or interest income.  
- [ ] Record any NSF (non‑sufficient funds) fees and follow up with the payer.  

> 💡 **Tip:** Use the “reconciliation” feature in your software; it automatically highlights unmatched items.

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## 3️⃣ Review Financial Statements  

- [ ] Generate the Income Statement (Profit & Loss) for the month.  
- [ ] Generate the Balance Sheet as of month‑end.  
- [ ] Compare month‑over‑month revenue and expense trends; note significant variances (>10%).  
- [ ] Verify that gross profit margin aligns with your budgeted target.  
- [ ] Check that current assets cover current liabilities (current ratio ≥ 1).  
- [ ] Ensure retained earnings reflect net income after owner draws.  

> 💡 **Tip:** Color‑code variance cells (red for over‑budget, green for under) to spot problem areas at a glance.

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## 4️⃣ Manage Payroll & Taxes  

- [ ] Verify payroll totals against time‑cards or scheduling software.  
- [ ] Confirm all payroll taxes (federal, state, local) have been calculated correctly.  
- [ ] Deposit payroll taxes by the required deadline.  
- [ ] File monthly/quarterly payroll tax reports (e.g., Form 941, state equivalents).  
- [ ] Update employee benefit deductions (health, retirement) if any changes occurred.  
- [ ] Record employer matching contributions to retirement plans.  

> 💡 **Tip:** Set calendar reminders 3 days before each tax filing deadline to avoid penalties.

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## 5️⃣ Process Accounts Payable & Receivable  

- [ ] Review AP aging report; prioritize payments to avoid late fees.  
- [ ] Schedule payments for invoices due within the next 7 days.  
- [ ] Apply early‑payment discounts where available.  
- [ ] Send out any overdue invoices and follow up with customers.  
- [ ] Record any bad‑debt write‑offs after proper documentation.  
- [ ] Update the cash flow forecast with expected inflows/outflows for the next month.  

> 💡 **Tip:** Automate recurring vendor payments through your bank to ensure consistency.

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## 6️⃣ Perform Month‑End Closing Tasks  

- [ ] Post adjusting journal entries (depreciation, amortization, accruals).  
- [ ] Verify that all expense accounts have been reconciled.  
- [ ] Close the month in the accounting system to lock prior periods.  
- [ ] Back up the accounting database and store a copy off‑site or in the cloud.  
- [ ] Review inventory counts (if applicable) and adjust COGS accordingly.  
- [ ] Prepare a brief month‑end summary for the business owner/management (key metrics, cash position, upcoming obligations).  

> 💡 **Tip:** Use a standardized month‑end closing template to ensure nothing is missed.

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## 7️⃣ Compliance & Record‑Keeping  

- [ ] Ensure all receipts and supporting documents are scanned and filed (digital folder: /Year/Month).  
- [ ] Verify that sales tax collected matches sales tax remitted; file sales‑tax return if required.  
- [ ] Check that any required licenses or permits are up to date.  
- [ ] Review insurance policies for coverage adequacy and upcoming renewal dates.  
- [ ] Update the chart of accounts for any new expense or revenue categories.  
- [ ] Confirm that the bookkeeping software is running the latest updates and security patches.  

> 💡 **Tip:** Retain digital copies of all financial records for at least 7 years to satisfy IRS and audit requirements.

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## How to use this checklist  

1. **Print or save** the checklist as a PDF and keep it in your accounting folder.  
2. **Assign responsibility** – designate a staff member or accountant for each section.  
3. **Schedule a recurring time** (e.g., the last business day of the month) to work through the list.  
4. **Mark each item** with a check (✓) only after the task is fully completed and documented.  
5. **Note any issues** in the margin or a separate “exceptions” log; address them before the next month.  
6. **Review the completed checklist** with the business owner or financial advisor during the monthly finance meeting.  

Consistently following this checklist will keep your books accurate, improve cash‑flow visibility, and make tax time far less stressful. Happy bookkeeping!