The monthly routine
- Reconcile every account. Match your books to bank and credit card statements.
- Categorize transactions. Put each expense and deposit in the right category.
- Follow up on unpaid invoices. Review receivables and send reminders.
- Review bills due. Plan payments around your cash position.
- Record payroll and contractor payments. Keep tax withholding and 1099 information up to date.
- Check your profit and loss. Compare the month with the last one and look into big changes.
- Store receipts and documents. Keep digital copies organized by month.
Every quarter
Review estimated tax payments, sales tax obligations and your forecast, so there are no surprises before filing dates.
Year-end checklist
- Confirm all 12 months are reconciled and closed
- Review fixed assets and depreciation with your tax preparer
- Collect Form W-9 from every contractor and prepare 1099-NEC data
- Reconcile payroll reports to your books before issuing W-2s
- Count inventory and confirm its value against the books
- Record owner contributions, loans and distributions, which foreign-owned companies need for Form 5472
- Send your accountant a complete, closed set of books
Signs your books need help
- Bank balances do not match your accounting software
- Many transactions sit in "uncategorized" or "ask my accountant"
- You cannot produce a profit and loss statement without a day of work
- Tax time brings surprises you could not have predicted
Tools that save time
Bank feeds, rules for recurring transactions, receipt capture and marketplace sync tools reduce manual entry. The software matters less than the routine, but if you are choosing, see our comparison of QuickBooks Online and Xero. If you would rather hand the whole process over, read about outsourced bookkeeping.
Why it matters
Monthly habits mean your year-end numbers are ready when your tax return is. If doing this yourself takes time you would rather spend on your business, that is exactly what our bookkeeping service handles.
Related services: US tax preparation, cross-border tax compliance and bookkeeping services.
Frequently asked questions
How often should I do my bookkeeping?
Reconcile and categorize at least monthly. Weekly review of transactions makes the monthly close faster and catches errors earlier.
What should be in a month-end close?
Bank and card reconciliations, categorized transactions, accounts receivable and payable review, payroll entries and a profit and loss check.
Can I do my own bookkeeping?
Yes, if you have the time and a consistent routine. Many owners outsource once the volume grows or when records must support tax filings and lenders.
Keep reading
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