A monthly bookkeeping checklist for small business owners

Bookkeeping is easier to manage when the same checks happen regularly. A monthly routine gives you a clear point at which to bring the records up to date, resolve missing information and understand what the business owes and is owed. It also makes conversations with your accountant more productive.

Bring the month’s documents together

Collect sales invoices, supplier bills, receipts, credit notes and relevant statements in one agreed system. Give documents clear names and dates, and check that emailed invoices have been captured as well as paper copies.

Look for costs paid personally on behalf of the business and transactions made through payment services or company cards. They can be missed when the review concentrates only on the main bank account. Record what each transaction was for and retain the supporting document.

Keep personal and business transactions clearly identified. For a limited company, the company’s finances must remain separate from those of its owners. Ask your accountant how payments involving directors should be recorded rather than assigning them to a general expense category.

Reconcile the accounts and resolve gaps

Match the accounting records to bank and card statements. A bank feed can make this quicker, but an imported transaction still needs the right explanation and supporting evidence. Confirm that the closing balances agree and investigate anything left unmatched.

Check for duplicated entries, refunds, transfers between accounts and payments recorded against the wrong invoice. A transfer is not automatically income or an expense, and a customer receipt may settle several invoices at once.

Butler Cook’s bookkeeping service can support this routine if keeping the records current is taking too much time. Agree who will supply documents and answer queries so that responsibility for each step is clear.

Review invoices and upcoming commitments

Compare outstanding customer invoices with the work completed during the month. Has everything that should have been billed been invoiced? Are any credit notes or disputes waiting to be resolved?

• Check overdue invoices and agree follow-up actions
• Review supplier balances against their statements
• Identify bills due before the next monthly review
• Check that payroll-related payments have been recorded
• Flag missing documents and unusual transactions for your accountant

Separate routine late payments from genuine disagreements about the work or invoice. Following up an invoice without understanding the query can waste time and make the conversation harder.

If the business is VAT-registered, include a review of the records needed for the next return. Raise unfamiliar transactions with your accountant rather than guessing at their treatment.

Close the month with a short review

Once the records are complete, look at sales, costs, outstanding debt and the bank position together. Note significant changes and the questions behind them. A large payment may be expected, while a repeated unexplained cost may need investigation.

Keep a short outstanding-items list with a person responsible for each query. Set a realistic deadline for the remaining documents and agree when the next review will take place. The routine works best when it fits the way information moves through your business.

Maintain secure access to records and a reliable backup process. Make sure your accountant receives information through the agreed channel, rather than relying on scattered attachments and messages.

If you would like help establishing a manageable bookkeeping routine, send Butler Cook an enquiry using the form alongside this article.