10 Steps to Streamline Your Month End Close Process

monthly bookkeeping checklist

By analyzing your numbers and implementing learnings, you can drive your business to success. For example, you can use accounting software and scan your receipts in real-time to make your month-end monthly bookkeeping checklist a breeze. Get help from others in your business to address any issues right away, or hire someone who can help. Make time to review any critical matters, such as cash flow issues, weekly.

Task 3: Categorize Client Bank Feeds

monthly bookkeeping checklist

Our mission is to equip business owners with the knowledge and confidence to make informed decisions. As part of that, we recommend products and services for their success. The good news is that as a fixed-rate client, if I get these tasks done in a shorter amount of time, I’m making a higher hourly rate.

Weekly Accounting Tasks

These tools simplify the process of recording and categorizing expenses, allowing you to issue reimbursements quickly. Instead of sorting through a stack of receipts at the end of the month, you and your employees can just snap a picture of the receipt and jot down the https://www.bookstime.com/ details. If your accounting software is connected to your bank and synced daily, there’s no need to wait for your monthly bank statement. Many accounting applications simplify reconciliation by suggesting matches, so all you have to do is review and approve them.

Record Accounts Payable Invoices

Lastly, keep a copy of each employee’s most recent pay stubs on hand so you can reference them if any questions arise. First, it enables you to verify all invoices are accounted for and paid promptly. Finally, it provides a clear record of spending that can be helpful in budgeting and financial planning.

Also, annual, quarterly, and monthly sales tax returns must be filed with the state where your business is conducted. Nothing keeps an accounting firm more unified and productive than a clear set of repeatable tasks. Online bookkeeping services typically offer a dedicated contact or team — but these are still virtual bookkeepers, available by email or occasionally by phone.

  • The point is you need to put in place a structured way ofupdating each and every customer payment to avoid problems with your customers.
  • It also ensures that you are meeting all of your financial responsibilities and tax deadlines.
  • This feature helps prioritize activities, avoid delays, and ensure you complete all bookkeeping tasks on time.
  • If you’re considering a bookkeeping service that runs on QuickBooks or Xero, include the cost of that software, too.
  • So, rushing through it and making mistakes won’t help, especially if these statements will be referred for your year-end close.
  • With up-to-date records, you will save time catching up with your financials during the month-end process.

Review and approve full-year financial reports and tax returns

This audit must be performed each year by certified professionals, and such independent audits add more value to your business than the regulatory requirements alone. Annual audits help test and assess various controls and procedures, and suggest necessary changes to improve efficiency or meet industry standards. Automatic backups don’t allow you to revert to a previous version, but they do take care of this task for you. One advantage of manually backing up your data is that you can revert to an earlier version if you deleted something you shouldn’t have. It also allows you to discover errors that would be easier to fix by going back a few days and reentering data instead of making significant adjustments.

Update Payroll Records

  • One of the most critical pillars of a successful month-end Close is performing thorough reconciliations.
  • This client has a few hundred transactions each month, and it takes me about 45 minutes to categorize the bank feeds.
  • Small business owners have their plate full with daily business operations, so it’s normal to dread the month-end admin.
  • With account reconciliations, you’ll spot mistakes in your financial data and fraudulent transactions (if any!).
  • Reviewing your Income Statement, or Profit and Loss Statement, at the end of each month reveals what your business earned and spent.
  • This includes income statement items (e.g., accounts receivable), expense records (e.g., accounts payable), and other daily transactions.
  • Together, these tools from HighRadius transform your financial closing procedures, enabling a seamless, efficient, and accurate month-end close process.

monthly bookkeeping checklist