A 7-step monthly bookkeeping checklist for small businesses

Clean monthly books make tax season faster, cheaper and less stressful. Use this checklist every month, especially if you use QuickBooks Online or Desktop.

1. Categorize every transaction so nothing stays uncategorized.
2. Match receipts to expenses so your deductions are supported.
3. Reconcile bank and credit card accounts to the statements.
4. Keep personal and business spending separate.
5. Review unpaid invoices and bills and follow up on late payments.
6. Check payroll reports and tax deposits against your books.
7. Read your profit and loss and look for anything unexpected.

Example (illustrative)

A grocery store owner opens QuickBooks at the end of the month and finds 40 bank transactions waiting in the “for review” list. Some are supplier payments, one is a personal grocery purchase and two are duplicates. Reviewing them monthly takes about an hour. Leaving them for a year turns it into a large cleanup project.

Warning signs that your books need attention

• Accounts that have not been reconciled for several months
• A large “uncategorized” or “ask my accountant” balance
• Profit and loss reports that do not look right

Not enough time? That is what our monthly bookkeeping service is for. If your books are already behind, see QuickBooks cleanup.

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