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Our monthly bookkeeping checklist template was carefully created to include all the necessary steps needed to accurately complete the monthly bookkeeping process for your clients. You can also customize it to fit your firm’s needs and share it with your team members. Besides investing in useful accounting software, you can use a monthly bookkeeping checklist to ensure nothing falls through the cracks. Your team will breeze through their assignments and quickly see what’s completed.
- Take stock of what you currently have on hand so you know exactly how much product you have available and the cash value of that inventory.
- You may find that you’ve received retainer deposits that you’ve not applied to a client invoice, or you may only have used a part of the deposit.
- Bank accounts have automatic debits, bookkeeping software has fees, credit card statements make you want to scream, and the list goes on.
- Each of us has to prioritize our tasks based on what is most important.
- They won’t need to ask you questions, nor will they need you to get involved in the process because they’ll have everything they need right within these checklists.
- Once you’ve reviewed, paid, and recorded both customer and vendor invoice payments, you are ready to check your credit card accounts and bank statements for accuracy.
- She uses a variety of accounting software for setting up client information, reconciling accounts, coding expenses, running financial reports, and preparing tax returns.
A monthly bookkeeping checklist template will help you create a standardized, efficient, and quick workflow process to complete monthly bookkeeping for your clients. 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. Spending a little time on this task each day is easy and eliminates a grueling month-end chore. It’s also a good time to review pending transactions for any errors or abnormalities, so you can investigate potential issues promptly.
steps for accurate and organized bookkeeping
If your staff members have different ways of completing work, it’s time to standardize your process to improve the quality and consistency of your firm’s work. Standardizing your processes through a checklist will save you from the headache that comes with inconsistent work. Monthly bookkeeping may not be all you need as a larger business—but it’s an important part of the bookkeeping process. These statements are prepared based on the records maintained throughout the year, and their effectiveness depends on the accuracy of those accounts.
As soon as you receive payments from customers, record them immediately in your bookkeeping software. This task keeps you from making the mistake of contacting customers who have already paid you for the same invoice. Let’s say your account closes on the 25th of each month, and your monthly bank statement isn’t sent/received until the 7th. By the time it arrives, law firm bookkeeping days have passed since your earliest transactions in that cycle, and there’s been a slew of new business transactions. Choosing between single and double-entry bookkeeping often depends on your company’s volume of transactions. With single-entry bookkeeping, you record each transaction as a single entry – this method is similar to balancing a checkbook.
Prepare monthly financial statements
These basic accounts include cash, accounts receivable, accounts payable, loans payable, sales, purchases, payroll expenses, inventory, retained earnings, and owners equity. Aside from helping business owners identify their company’s financial health status, accurate bookkeeping also gives several perks that companies will surely benefit from. Bookkeeping allows entrepreneurs management cash well, helps in business decision-making, and reduces risks. Hence, it is imperative to make sure that every data placed in the bookkeeping tracker are accurate.
With this, bookkeepers will be able to ensure that all the necessary data and information to be used in bookkeeping will be gathered. Last week I went over the bookkeeping tasks you should be completing on a daily and weekly basis. It’s important you do so in order to maintain organized and current books while keeping your finger on the financial pulse of your practice.