But wait, Sheri-Lynn, if I do my own bookkeeping, doesn't that mean you don't have a job? Well yes and no. I truly believe that there are business owners who can do their own books and those that maybe shouldn't. And I want to empower and support both types of small business owners.
The three reasons you should do your own bookkeeping are :
You Enjoy It!
You Understand HOW to do your own bookkeeping
You have the TIME to do your own bookkeeping.
So if you fall into at least one of the above, I still want to help you. Because, managing your business finances can feel overwhelming, even if it is something you enjoy, understand, and have time to do. But breaking it down into manageable tasks can make all the difference.
Here are essential bookkeeping tasks you should complete monthly to keep your business running smoothly and your finances in check.
1. Record All Transactions
Ensure all business transactions, including sales, expenses, loan payments, and cash transactions are accurately recorded. This helps maintain up-to-date financial records and prevents any discrepancies.
2. Reconcile Bank Accounts
Regularly reconciling your bank and credit card accounts helps identify any errors or unauthorized transactions. Compare your bank statements with your recorded transactions to ensure they match.
3. Update Accounts Receivable and Payable
Keep track of who owes you money and what you owe others. Send out invoices promptly and follow up on overdue payments. Similarly, ensure you pay your bills on time to maintain good relationships with suppliers.
4. Review Cash Flow
Monitor your cash flow to ensure you have enough funds to cover upcoming expenses. This helps you make informed decisions about spending and investments.
5. File Receipts and Documents
Organize and file all receipts, invoices, and financial documents. This will save you time when you need to retrieve information for tax purposes or financial analysis. Using an app or cloud storage will make this job even easier and keep those receipts from cluttering up your desk.
6. Generate Financial Reports
Run monthly financial reports to get a snapshot of your business's financial health. Key reports to review include profit and loss statements, balance sheets, and cash flow statements.
Staying on top of these monthly bookkeeping tasks can significantly enhance your financial management and help you make informed decisions for your business. If you need assistance or want to ensure your bookkeeping is in top shape, we're here to help!
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