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Monthly Bookkeeping Checklist For Interior Designers

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Monthly Bookkeeping Checklist

This blog article is to provide general information only, does not constitute tax or legal advice, and cannot be used or substituted for tax or legal advice. Savvy Bird Consulting, LLC is not responsible for the implementation or outcomes this material may have. One simple tip to keep your business financials updated is to do at least one thing every week.

  • If multiple owners hold shares in the business, calculate the funds remaining after the owners have received their proceeds and compare it to the earnings reported on the business’s tax return.
  • My client is happy with the flow of things, so we haven’t transitioned to a more automated system, but because of the extra paper it is more time-intensive than it probably needs to be.
  • When a business’s accounting records fall out of order, its books no longer provide the guidance they were meant to.
  • Figure out what the most important reports are for your particular client and ensure he gets them from you each month or quarterly.

Reviewing financial statements often helps a business owner from overspending on unnecessary or unpopular times and prevent financial challenges in the future. As you can imagine, if a business owner has been handling their finances throughout the year, this process becomes infinitely easier. Because all of the finances for each month are done and accurate, the year-end accounting will go smoother, faster, and be more accurate than if this month-end checklist was not completed. When a business’s accounting records fall out of order, its books no longer provide the guidance they were meant to. Nor do they provide compelling support for the business’s tax return filings in case of an audit.

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Tasks range from categorizing bank feeds to entering checks to reconciling and sending reports to the client. Today I’m going to share with you exactly what I do each month for one of my bookkeeping clients using my own checklist. This list has been helpful for me to keep up-to-date and on track with my client’s books. Review the accounts payable aging report to see which bills need to be paid or scheduled to pay. After your analysis, you may want to show the client these reports to verify that every payment has been applied correctly and what is still outstanding. You will then create and send invoices to follow up on the accounts payable balance to get it paid.

Your company needs to record revenue and expenses each month to accurately know your financial status. A profit and loss statement shows your bottom line and operating expenses, Monthly Bookkeeping Checklist and it needs to be assessed every month. As an employer, you’re required to submit quarterly payroll reports to the IRS and make quarterly payroll tax payments .

Review Cash Flow

Ask your bookkeeper to share your cash flow statement at least once a month. The most important part of running a small business is knowing how much cash you have every day. If you don’t have time, your bookkeeper should be informing you how much you have in your account and any incoming or outgoing money daily. By doing some accounting tasks weekly – like depositing checks, invoicing for services or products you’ve provided, and reviewing payroll expenses – you can operate your business more effectively. Accounts receivables are monies owed to the business from sales or services rendered to customers. At month’s end, prepare a chart or list of clients who have an outstanding balanced owed to the business.

The first step is to ensure that all income and expenses are recorded in your accounting system to categorize and reconcile. Enter all the accounting data such as bills received, receipts, import/post payroll, and generate invoices. The key to this step is making sure that all incoming documents are handled by a reliable accounting system under the eye of a reliable bookkeeper. This can be as much a personnel decision as an accounting one.

Between utilities, rent, and invoices from vendors, small businesses bills can accumulate quickly. Vendors appreciate being paid on time, and staying on top of your bills is a clear way to build a favorable reputation and stay on top of finances. Balance Sheet – The balance sheet is a detailed list of your business’s assets, liabilities, and equity. Not only is this an important financial document, it’s also a great way to keep an eye on the health of your business.

Monthly Bookkeeping Checklist

Depending on the service you’re starting, this could be $150-$250. After that, you will have a monthly recurring cost, which may be about $150 per service. You may also be charged for your QuickBooks subscription, which can run from $18-$26 a month. On the other hand, product-based industries love QuickBooks Desktop because of its inventory tracking and batch invoicing capabilities and industry-specific features. Your bookkeeper will know which version of QuickBooks works best for your business. Smooth communication with clients is a big part of your success as an interior design firm.

#9: Review Your Inventory

Each of us has to prioritize our tasks based on what is most important. If you are looking for an easier way to implement this template in your firm and share it with your team try our accounting workflow management solution, Financial Cents, for free.

Close Your Books – Once you’ve got every piece of financial information accounted for, you should balance and close your books for the year. Once that is done, make sure to print out and save copies of your year-end Big 3 Financial Statements. Cash Flow Statement – The last of the “Big 3 Financial Statements” is your Cash Flow Statement. Along with your balance sheet and P&L, this statement helps determine the financial health of your business. Again, you may be required to keep this document on file depending on your business structure. Profit & Loss Statement – In addition to your balance sheet, you should also complete a Profit & Loss Statement (also known as a P&L Statement or Income Statement) each month. This will show you how much money you made for the month and may be a record-keeping requirement depending on your business structure.

Monthly Bookkeeping Checklist

Most small businesses use a tax accountant during tax season to make sure all their documents are accurate and filed properly. Make sure credit card payments have been deposited in the bank account to verify there have not been any processing problems that kept money out of your hands. Check all incoming invoices and enter them into the accounting system. Keep all receipts and other relevant documents for tax purposes and for reference in case there are errors when balancing the books.

Review And Reconcile Transactions

One of the extra reports my client wants is a running total of all income so he can see on an overarching scale how the business is doing. This task hasn’t been done in the past few months for this client because we don’t discuss them every month that we meet. I want to be respectful of their time, and it’s more efficient just to do a whole bunch of them at once. A trusted advisor brings insight and strategy to your data analysis. Automation through software has revolutionized accounting and bookkeeping in so many ways, but it can’t replace the human being.

State Quarterly Tax Return – Depending on your state’s rules, you may also have to file a quarterly return with them. Make sure to check with your state to find out their filing requirements. You can trust the integrity of our balanced, independent financial advice. We may, however, receive compensation from the issuers of some products mentioned in this article. This content has not been provided by, reviewed, approved or endorsed by any advertiser, unless otherwise noted below. When looking for a bookkeeper, you may find yourself choosing between a bookkeeper, an accountant, and a CPA.

Record And Categorize Expenses

With flat-rate prices starting at just $199/mo, you’ll likely find that it’s faster, easier, and cheaper to hire a professional. I’ve been ordering Quickbooks computer checks, laser tax forms and other bookkeeping supplies from these people since 1998. Their online ordering system is clear and easy to use and their customer service has been great. At the end of the day, bookkeepers have to go through all the journal entries, and if any entry needs modification, that should be made.

  • You’ll also need to send copies to your employees/contractors.
  • Compare your invoices with your records to make sure you aren’t missing any customer payments.
  • If you’re new to bookkeeping checklists, this is a great place to start your journey towards being more efficient.
  • That way you are ready to answer any questions they have for you.
  • To understand how a month-end checklist can help your business, you should understand what one of these checklists actually contains.

That way you are ready to answer any questions they have for you. I’ve worked with 30+ clients and as I’ve walked through previous tax seasons, I’ve noticed an ongoing trend of what CPAs consistently ask for. File W-2s and 1099s via Form W-3 – You also need to file the 1099s and W-2 forms with the Social Security Administration before March 31. To register for an account and file your forms, head to

A bookkeeper, accountant, or combination of both are the best solutions for small business bookkeeping services. First, decide which bookkeeping tasks you want to outsource and if you want a more cost-effective virtual bookkeeper or more personal local bookkeeper. Then search for the type of bookkeeper you want through industry associations, bookkeeping organizations, or referrals from other small business owners.

Quarterly Bookkeeping

Adding tax filings to your monthly activities removes all that risk. Without a well-documented bookkeeping process, your firm may not be meeting its full potential in terms of profitability and growth. Staff may spend more time on each client, double checking which tasks are missing.

Bookkeeping Mistakes That Cost Your Small Business Big

I created a separate checklist for my client’s savings account because there are way fewer transactions each month in it, so I don’t feel the need to spend my time reconciling it every single month. I need to wait on my client to give me the information for this task, so it doesn’t always happen as step four. My client wants to record how much money each person in the firm is making, and that is tracked on the profit and loss statement. They have a book where they record all that information, and then it comes to me, and I put it into QuickBooks.

Review Your Cash

Start with one of the above categories and work your way to the others. Divvying up the records when reconciling your bank statement can help you stay organized and catch errors at month-end.

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