Monthly Bookkeeping Checklist for Small Businesses

Most business owners don’t realize how quickly small bookkeeping tasks pile up. Then tax season hits, and suddenly everything feels messy and expensive.

A little consistency each month saves hours of stress later. Here’s a simple monthly bookkeeping checklist that keeps your books clean and your business on track.

Why Monthly Bookkeeping Matters

Bookkeeping isn’t just for taxes. It’s how you understand where your money goes, how much you can pay yourself, and whether your business is actually growing.

When your books are updated every month, you can:

• Spot cash flow issues early

• Budget for taxes with confidence

• Share accurate reports with your accountant

• Make smart decisions using real numbers, not guesses

✅ Your Monthly Bookkeeping Checklist

1. Reconcile Your Bank and Credit Card Accounts

Make sure every transaction in QuickBooks matches your bank and credit card statements. This catches errors, duplicate charges, and missing income before they turn into bigger problems.

2. Categorize All Transactions

Every expense should be in the right category: advertising, office supplies, meals, travel, and so on. Accurate categories make your reports useful and help your accountant find tax deductions.

3. Record Income Correctly

Check that all invoices are entered and payments are applied to the right clients. If you use QuickBooks Online, match deposits to invoices so your income isn’t overstated.

4. Review Accounts Receivable and Payables

Look at who owes you money and who you still owe. Follow up on overdue invoices and pay outstanding bills to keep your relationships and cash flow healthy.

5. Save and Organize Receipts

Keep digital copies of receipts using apps like QuickBooks, Hubdoc, or even Google Drive. Organized records make audits and tax prep simple.

6. Review Payroll and Contractor Payments

Confirm payroll amounts are correct and contractors have accurate 1099 information on file. It’s easier to fix mistakes now than at year-end.

7. Check Your Profit and Loss Report

Run a Profit and Loss statement for the month. Look at your income, expenses, and net profit. Ask yourself: did revenue grow? Are expenses creeping up?

8. Review the Balance Sheet

Make sure assets, liabilities, and equity are accurate. This shows what your business owns and owes and whether your net worth is increasing.

9. Set Aside Money for Taxes

Use your monthly profit to calculate how much to save for taxes. Setting aside even 20 to 25 percent of profit in a separate account keeps surprises away.

10. Back Up Your Data

If your system doesn’t do it automatically, back up your accounting files and client documents at least once a month.

A Simple Monthly Habit That Pays Off

Monthly bookkeeping isn’t busywork — it’s your early warning system. It tells you what’s working, what’s not, and where your money is really going.

If your books are months behind or confusing to look at, you don’t need to start over from scratch. You just need a clean setup and someone who keeps things updated for you.

At Red Leaf Bookkeeping, we handle your monthly bookkeeping so you can focus on running your business — not catching up on it.

👉 Book a free Money Clarity Call and see how easy monthly bookkeeping can be when it’s done right.