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As a small business owner, it’s easy to let bookkeeping fall to the bottom of your to-do list—until tax season rolls around and panic sets in. But here’s the truth: consistent monthly bookkeeping is one of the smartest habits you can build for your business.
At Easy Books TX, we believe in keeping things simple, consistent, and stress-free. That’s why we’ve put together this detailed Monthly Bookkeeping Checklist to help you stay organized, save time, and make informed decisions year-round.
✅ 1. Reconcile Your Bank and Credit Card Accounts
Each month, match your bank and credit card statements with your bookkeeping records. This process—called reconciliation—helps ensure all your transactions are accounted for and correctly recorded.
Why it matters:
- Identifies duplicate or missing transactions
- Detects errors or fraudulent activity
- Keeps your balance accurate for decision-making
🛠 Pro Tip: Use software like QuickBooks Online to automate much of this process—but always review manually to ensure accuracy.
✅ 2. Record All Income and Expenses
Don’t let receipts and invoices sit in a shoebox. Every income and expense needs to be properly entered into your bookkeeping system. This includes:
- Sales revenue
- Vendor payments
- Utility bills
- Subscriptions
- Business meals or travel
Why it matters:
You’ll avoid scrambling during tax time and ensure you’re claiming all eligible deductions.
🛠 Pro Tip: Keep a digital folder (cloud-based or on your device) and snap a picture of each receipt the moment you get it or upload directly via the QuickBooks Online mobile application.
✅ 3. Categorize Transactions Accurately
Label each transaction with the correct category (e.g., Office Supplies, Marketing, Travel, Payroll). This helps you analyze spending patterns and generate accurate financial reports.
Why it matters:
- Improves budgeting and forecasting
- Makes tax prep easier
- Helps identify deductible expenses (Read up on that at the IRS Website
🛠 Pro Tip: Create custom categories that match your business type for even more precise reporting.
✅ 4. Review Accounts Receivable and Payable
Check your accounts receivable to see who owes you money and follow up on late payments. On the flip side, make sure you’re up-to-date on your own accounts payable to avoid late fees or damaged vendor relationships.
Why it matters:
- Keeps your cash flow healthy
- Prevents surprises when bills are due
- Builds trust with clients and suppliers
🛠 Pro Tip: Set reminders for payment due dates and invoice follow-ups.
✅ 5. Monitor Your Cash Flow
Your cash flow is the lifeblood of your business. Even profitable businesses can struggle if cash isn’t flowing properly. Each month, analyze how much money came in versus how much went out.
Why it matters:
- Ensures you can cover upcoming expenses
- Helps with planning large purchases or investments
- Alerts you to potential trouble before it hits
🛠 Pro Tip: Set aside 15–30 minutes each month to review your cash flow statement. It’s a simple habit that pays off big.
✅ 6. Update Business Mileage and Other Logs
If you use your personal vehicle for business or have recurring business-related mileage, log it consistently. The IRS allows deductions for business mileage—but only with proper documentation.
Also, track any home office use, equipment purchases, and other deductible items regularly.
🛠 Pro Tip: QuickBooks Online automates mileage tracking making it easy to keep track of business miles so you can get all the available deductions (find details on business mileage deductions are the IRS website).
✅ 7. Backup Your Financial Records
Protect your financial data by keeping regular backups. This could be through cloud-based platforms (Microsoft OneDrive, Google Drive), external hard drives, or encrypted storage services.
Why it matters:
- Guards against data loss due to hardware failure or cyber threats
- Keeps you audit-ready
- Maintains client trust and compliance
🛠 Pro Tip: Set a recurring calendar reminder for monthly backups.
✅ 8. Generate and Review Key Financial Reports
Each month, generate these three core reports:
- Profit & Loss Statement: Shows income and expenses
- Balance Sheet: Reflects assets, liabilities, and equity
- Cash Flow Statement: Tracks money movement
These reports give you a clear picture of your business health and help you make informed decisions.
🛠 Pro Tip: Don’t just generate the reports—review them. Look for trends, unexpected changes, or opportunities for savings.
Final Thoughts
Bookkeeping doesn’t have to be a burden. By setting aside a little time each month, you can keep your business finances in great shape and avoid unnecessary stress. At Easy Books TX, we’re here to support you every step of the way.
Need help managing your monthly bookkeeping checklist? Let’s chat—we make bookkeeping easy so you can focus on growing your business.
