# Small Business Bookkeeping Monthly Checklist

A well‑organized bookkeeping routine keeps your finances clear, helps you stay compliant, and gives you confidence when making business decisions. Use this printable checklist at the end of each month to verify that every essential task has been completed, documented, and filed.

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## 1️⃣ Record All Transactions  
- [ ] Enter all sales invoices into the accounting software.  
- [ ] Record every cash receipt (e.g., cash sales, bank deposits).  
- [ ] Log all expense receipts, including petty‑cash purchases.  
- [ ] Reconcile credit‑card statements to recorded expenses.  
- [ ] Allocate any inter‑company transfers or owner draws.  
- [ ] Update inventory movements (purchases, sales, adjustments).  
- [ ] Verify that recurring subscriptions are posted correctly.  
> 💡 **Tip:** Set up automated bank feeds where possible to reduce manual entry errors.

## 2️⃣ Reconcile Bank & Credit Card Accounts  
- [ ] Download the month‑end bank statement (PDF or CSV).  
- [ ] Match each transaction in the statement to entries in your ledger.  
- [ ] Flag and investigate any unmatched or duplicate items.  
- [ ] Reconcile the ending balance to the accounting software’s balance.  
- [ ] Record any bank fees, interest income, or service charges.  
- [ ] Update the cash flow forecast with the reconciled balances.  
> 💡 **Tip:** Perform the reconciliation within two business days of receiving the statement to catch issues early.

## 3️⃣ Review Accounts Receivable & Payable  
- [ ] Generate an A/R aging report and identify overdue invoices.  
- [ ] Send reminder emails or statements to customers with past‑due balances.  
- [ ] Apply any customer payments or credit memos received during the month.  
- [ ] Produce an A/P aging report and verify due dates.  
- [ ] Schedule upcoming vendor payments to avoid late fees.  
- [ ] Record any vendor credits, refunds, or adjustments.  
> 💡 **Tip:** Offer a small discount for early payment to improve cash flow.

## 4️⃣ Payroll & Employee Expenses  
- [ ] Run the payroll for the month and verify gross, tax, and net amounts.  
- [ ] Post payroll journal entries (wages, taxes, benefits).  
- [ ] Reconcile payroll liabilities (taxes, retirement contributions).  
- [ ] Review employee expense reports and approve reimbursements.  
- [ ] Ensure all expense items are coded to the correct GL accounts.  
- [ ] Update accrued vacation, sick leave, or other employee liabilities.  
> 💡 **Tip:** Use a single expense policy checklist to speed up approvals and maintain consistency.

## 5️⃣ Tax & Regulatory Compliance  
- [ ] Calculate and remit sales tax collected for the month.  
- [ ] Verify that payroll tax deposits and filings are up to date.  
- [ ] Record any estimated income tax payments made.  
- [ ] Review and file any required local business licenses or permits renewals.  
- [ ] Update the Fixed‑Asset Register for new purchases or disposals.  
- [ ] Ensure depreciation expense is posted for the month.  
> 💡 **Tip:** Keep a calendar of filing deadlines in your accounting software to receive automated reminders.

## 6️⃣ Financial Reporting & Analysis  
- [ ] Generate the month‑end Income Statement (Profit & Loss).  
- [ ] Produce a Balance Sheet and compare to the prior month’s figures.  
- [ ] Create a Cash Flow Statement (operating, investing, financing).  
- [ ] Analyze key ratios (gross margin, net profit margin, current ratio).  
- [ ] Highlight any variances >10% versus budget or prior month.  
- [ ] Save all reports in a dated folder and back them up to cloud storage.  
> 💡 **Tip:** Schedule a 30‑minute review meeting with the business owner or manager to discuss the results.

## 7️⃣ Documentation & Backup  
- [ ] File all digital receipts, invoices, and statements in the proper folder structure.  
- [ ] Archive physical documents in a fire‑proof safe or off‑site storage.  
- [ ] Perform a backup of the accounting database to an external drive or cloud service.  
- [ ] Update the chart of accounts if new expense or revenue categories were added.  
- [ ] Review user access permissions; remove any inactive accounts.  
- [ ] Note any process improvements or issues in a “Monthly Bookkeeping Log.”  
> 💡 **Tip:** Use a naming convention like `YYYY-MM_Description_Type.pdf` for easy retrieval.

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## How to use this checklist  
1. **Print or save** the checklist at the start of each month.  
2. **Assign owners** for each section (e.g., bookkeeper, office manager, payroll specialist).  
3. **Work through the list** sequentially; tick the box only after the task is fully completed and documented.  
4. **Address any flagged items** immediately—do not close the month until all discrepancies are resolved.  
5. **Store the completed checklist** with your monthly financial records (digital copy in the same folder as the month‑end reports).  
6. **Review the checklist quarterly** to add, remove, or refine tasks as your business evolves.  

Consistently following this checklist will keep your books accurate, simplify tax filing, and provide the financial clarity needed for growth. Happy bookkeeping!