Why Monthly Bookkeeping Matters
If you’re new to bookkeeping, keeping up with it every month prevents stress, errors, and surprise tax bills. A simple monthly routine helps you stay organized, understand your cash flow, and keep your business financially healthy.
Here’s a beginner-friendly checklist you can follow every month — no accounting degree needed.
✔️ 1. Download & Review Monthly Bank Statements
Always start with your statements.
This helps you see every transaction from the month and catch anything unusual.
Bank accounts
Credit cards
Payment processors (PayPal, Square, Stripe)
Make sure nothing looks unfamiliar.
✔️ 2. Categorize All Income & Expenses
Go through each transaction and assign it to the correct category, like:
Common Expense Categories:
Office supplies
Software
Advertising
Meals
Rent
Travel
Cost of goods sold
Accurate categories = accurate taxes and reports.
✔️ 3. Reconcile Your Accounts
Reconciliation means checking your bookkeeping software against your bank statements to make sure everything matches.
You’ll catch:
Duplicate transactions
Missing expenses
Bank errors
Fraud or unauthorized charges
Do this every month, not just at tax time.
✔️ 4. Record & Upload Your Receipts
The IRS expects documentation.
Make it easy by storing receipts digitally:
Snap a photo
Upload to QuickBooks, Xero, Wave, or a Google Drive folder
Label by month (ex: 2025-November-Receipts)
Never wait until the end of the year to do this.
✔️ 5. Review Outstanding Invoices
Check for:
Clients who haven’t paid
Invoices you forgot to send
Automatic payments that failed
Follow up on unpaid invoices before they become overdue.
✔️ 6. Review Bills You Owe
Look at bills your business needs to pay:
Subscriptions
Rent
Utilities
Contractor payments
Vendors
Credit card payments
Pay what’s due and schedule what’s coming.
✔️ 7. Update Your Mileage or Travel Log
If you drive for business, keep your mileage updated monthly.
Apps like MileIQ make this easy.
Don’t wait until tax season — you will forget trips.
✔️ 8. Review Your Profit & Loss Statement
Look at the month’s:
Income
Expenses
Net profit
This tells you if your business is actually making money or overspending.
✔️ 9. Check Your Cash Flow
Even if you are profitable, cash flow tells the real story.
Ask yourself:
Do I have enough to cover next month’s expenses?
Am I waiting on too many unpaid invoices?
Do I need to adjust spending?
Cash flow is what keeps your business alive.
✔️ 10. Back Up Your Books
Save a copy of your monthly data.
Even if you use cloud software — backups protect you from:
Accidental deletions
Sync errors
Account lockouts
A simple export every month keeps you safe.
Final Thoughts
A monthly bookkeeping routine keeps your business organized and ready for tax time. You don’t need to be an accountant — just stay consistent and follow the same steps each month.
If you ever feel behind or overwhelmed, I can help with monthly bookkeeping, cleanup projects, or a full system setup so your books stay stress-free.