Monthly Bookkeeping Checklist

Suggested Monthly Timeline

Week 1: Collect & Organize

• Gather all receipts and invoicesCollect physical and digital receipts from the prior month. Photograph any paper receipts and file digitally.
• Download bank and credit card statementsSave PDF statements from all business accounts for the prior month.
• Collect outstanding vendor billsEnsure all bills received during the month are entered into your system.
• Verify payroll was processed correctlyConfirm all payroll entries, tax withholdings, and employer contributions are recorded.
• Record any cash transactionsLog petty cash disbursements and any cash payments received.

Week 1–2: Categorize & Record

• Review and categorize all bank transactionsGo through every transaction in your bank feed. Assign the correct expense or income category.
• Review and categorize credit card transactionsSame process for each business credit card.
• Record any manual journal entriesDepreciation, prepaid expenses, accrued liabilities, or other adjusting entries.
• Send any outstanding invoicesInvoice for all work completed during the month. Don't leave revenue unrecorded.
• Follow up on overdue receivablesReview your aging report and send reminders for past-due invoices.
• Record loan paymentsSplit each payment between principal (liability reduction) and interest (expense).

Week 2: Reconcile

• Reconcile business checking account(s)Match every transaction in your books to your bank statement. Investigate any discrepancies.
• Reconcile business credit card(s)Ensure credit card statement balance matches your books.
• Reconcile PayPal, Stripe, or other payment processorsMatch deposits and fees to your records.
• Reconcile petty cashCount physical cash and compare to your petty cash ledger balance.
• Verify accounts receivable agingEnsure A/R balance matches the sum of all unpaid invoices.
• Verify accounts payable agingEnsure A/P balance matches the sum of all unpaid bills.

Week 2–3: Review & Adjust

• Review Profit & Loss statementCompare to prior month and same month last year. Investigate unusual variances (>10%).
• Review Balance SheetVerify assets = liabilities + equity. Check for any unusual balances.
• Review cash flowEnsure you have enough cash to cover upcoming expenses and payroll.
• Record depreciation entriesBook monthly depreciation for fixed assets if applicable.
• Record prepaid expense amortizationExpense the current month's portion of annual insurance, software licenses, etc.
• Review sales tax collected vs. owedEnsure sales tax liability matches what needs to be remitted.
• Budget comparisonCompare actual spending to your budget. Note areas over or under budget.

Final Steps: Close the Month

• Make final adjusting entriesAny accruals, deferrals, or corrections identified during review.
• Generate and save final reportsP&L, Balance Sheet, Cash Flow, A/R Aging, A/P Aging. Save as PDFs for your records.
• Back up your dataExport data or confirm cloud backups are current.
• Set reminders for upcoming deadlinesQuarterly tax payments, sales tax filings, annual renewals, etc.
• Note action items for next monthOutstanding issues, follow-ups, or process improvements to implement.

Quarterly Add-Ons

In addition to the monthly checklist, complete these tasks every quarter (March, June, September, December):

• Calculate and pay estimated taxesFederal (Form 1040-ES) and state estimated tax payments. Due April 15, June 15, September 15, January 15.
• File and remit sales taxIf you collect sales tax, file returns and remit payments per your state's schedule.
• Review and update budgetAdjust projections based on actual performance from the prior quarter.
• Review contractor paymentsTrack cumulative payments to each contractor for 1099 preparation at year-end.

Key Metrics to Track Monthly