Things You Cannot Ignore in Monthly Bookkeeping Checklist.
While maintaining the bookkeeping for any business, you need to ensure that all necessary aspects are done properly related to it. One of the crucial aspects of an efficient bookkeeping system is to make a proper bookkeeping checklist on a monthly basis.
This will give a better understanding of the financial transactions happening regularly. Dividing the bookkeeping tasks on a monthly basis can bring simplicity and consistency in it. Many businesses have experienced consistency in bookkeeping by making proper checklist on a monthly basis.
If you are struggling with bookkeeping, accounting, or proper cash flow management then you need to get important bookkeeping checklist done monthly. Although there are many activities in bookkeeping, this guide will provide important bookkeeping activities.
What are the important bookkeeping tasks to be done on monthly basis?
Doing some important tasks of bookkeeping on monthly basis can be very helpful for businesses.Here are the main things you can’t ignore in the monthly bookkeeping checklist:
Review Income and Revenue
Verify that all sources of income and revenue have been recorded accurately. Confirm that sales, fees, and other income items match with supporting documentation.
Expense Tracking
Check and categorize all expenses, including bills, receipts, and credit card transactions. Ensure that expenses are correctly allocated to the appropriate accounts.
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Bank Reconciliation
Reconcile your bank and credit card statements with your accounting records. Any missing transactions or mistakes can be easily detected. This will bring better accuracy in the bookkeeping.
Accounts Receivable
Review all the outstanding customer invoices and follow up on overdue payments. Consider sending reminders or making collection calls as necessary.
Accounts Payable:
Verify that all supplier invoices are accounted for and scheduled for payment. Check for any past-due bills and plan to settle them.
Payroll Processing:
If applicable, ensure accurate payroll processing, including employee salaries, taxes, and benefits. Verify that all payroll taxes are properly calculated and paid.
Inventory Management
Update your inventory records to reflect current stock levels. Monitor inventory turnover and assess the need for restocking or liquidating items.
Appropriate Depreciation calculation
Record and calculate depreciation and amortization expenses for fixed assets and intangible assets. Ensure its compliance with accounting standards.
Financial Statements
Prepare or review key financial statements, including the income statement (profit and loss), balance sheet, and cash flow statement. Analyze financial performance and identify trends.
Tax Compliance:
Prepare any required tax reports and filings, such as sales tax, payroll tax, and income tax. All tax obligations must be ensured before-hand as per guidelines.
It is essential to maintain organized financial records, backup documentation, and a clear filing system to streamline the monthly bookkeeping process. Regularly updating your bookkeeping software or spreadsheets can also simplify these bookkeeping tasks. Staying organized and consistent with your monthly bookkeeping routine is crucial for the long-term financial success of your business.
If you are looking to outsource bookkeeping services to experts then Accounts Junction is a better choice. Accounts Junction provides quality bookkeeping services for businesses. They have experts who can make proper bookkeeping checklists on a monthly basis. This will ensure that all your important bookkeeping tasks are done properly to bring consistency. Accounts Junction is a proficient bookkeeping service-providing company around the world.
FAQs-
1. Why use a monthly bookkeeping list for a small firm?
- A monthly list makes tasks clear and quick to track. It shows real cash in and out. This step stops slip-ups and helps you plan fast for growth.
2. How does bank match-up help avoid errors?
- Bank match-up checks your books with your bank slips. It shows missed or wrong notes. This keeps your fund data neat and real each month.
3. What harm comes from late, unpaid bills from clients?
- Late unpaid bills hurt your cash and slow your plans. You may lose funds you need to grow. A monthly check lets you chase late payers in time.
4. Why should you note costs each month?
- Costs grow quickly if you do not track them. A monthly note helps you cut waste and keep tax files neat. It stops year-end stress and lost proof of spend.
5. How does a payroll check each month save tax pain?
- A payroll check makes sure staff pay and taxes are right. It stops fines for wrong tax sums. It keeps your team glad with no late pay or slips.
6. Why add stock count to the monthly list?
- Stock count keeps track of what you have to sell. It stops too many buys or lost sales due to no stock. This keeps your books and sales data true.
7. How do monthly reports help you act fast?
- A quick look at reports shows gains, losses, and weak spots. You can make fast moves to fix issues or boost sales with no wait.
