Monthly Bookkeeping for your Small Business

Running a small business is exciting, but it can also be overwhelming. Between serving customers, managing employees, and planning for growth, bookkeeping often ends up at the bottom of the to-do list. Yet keeping your books up to date is one of the most important things you can do to understand your cash flow, stay compliant, and avoid headaches at tax time.

Whether you’re running a shop, a service business, or an online store, you don’t have to be an accountant to keep your financials organized. With some regular attention each month, you’ll have reliable numbers to guide your decisions and keep your business on track.

Please check out this basic checklist to help you accomplish each task throughout the month!

Below is the printable booklet for Monthly Bookkeeping for Small Businesses detailing each task throughout the month.

Monthly Bookkeeping for Small Business Curated Accounting Solutions.

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1.) Income

Record All Income

Start by gathering every source of revenue for the month. This includes point-of-sale systems such as Square or Clover, any online platforms like Shopify or Etsy, and invoices you’ve sent and been paid for. If you still accept checks, make sure those are deposited and recorded. It’s important to separate sales tax from your gross sales, that money isn’t truly yours and will need to be remitted later. If you’re unsure how to classify certain types of income, such as tips, reimbursements, or refunds, it’s worth asking your accountant for guidance.

Reconcile Payments and Deposits

Once you’ve recorded sales, compare your payment processor reports (Stripe, PayPal, Square) with the deposits that have actually hit your bank account. Funds sometimes get delayed or deposits can be missing. This step helps ensure you’ve received everything you’re owed and keeps your records accurate.

2.) Expenses

Enter and Categorize Expenses

Every receipt and bill should be uploaded or entered into your accounting software. Categorize each expense as accurately as possible, cost of goods sold, rent or utilities, marketing, office supplies, professional services, and so on. How you categorize affects your profit and loss report and can make a difference at tax time. If you’re not sure where an expense belongs, make a note and ask your accountant.

Reconcile Credit Card Statements

Match each charge on your credit card statement to your receipts and entries in your books. This helps catch duplicate or unauthorized charges and reminds you of subscriptions you might not be using anymore. It’s also a simple way to ensure your records are complete.

3.) Bank Reconciliation

Reconcile Bank Accounts

Compare your accounting software or check register to your actual bank statement. Make sure all deposits, checks, ACH payments, and transfers are accounted for. This step is one of the most important for keeping your numbers reliable and spotting any errors or fraud quickly.

4.) Payroll

Handle Payroll and Contractors

If you have employees, process payroll and verify that wage calculations, tax withholdings, and benefit deductions are correct. Record payroll liabilities for federal and state taxes, Social Security, and Medicare. If you pay contractors, track those payments so you’re prepared for year-end 1099 reporting. Payroll can be complicated, so consider using a payroll service or working closely with your accountant.

5.) Review

Review Your Financials

At least once a month, set aside time to look over your profit and loss statement (sometimes called an income statement) and your balance sheet. These two reports give you a clear picture of how your business is performing.

On your profit and loss statement, review your revenue compared to previous months or your budget. Are sales where you expected them to be? Are any expense categories climbing unexpectedly, like utilities, marketing, or inventory costs? Watching these trends early lets you take action before problems grow.

Your balance sheet shows what your business owns and owes at a given point in time. Look for unusual changes in assets (like big jumps in inventory or accounts receivable), liabilities (such as new loans or unpaid bills), or equity. A healthy balance sheet helps you understand if your business can cover its obligations, invest in growth, or weather a slower season.

This review isn’t just about catching mistakes, though it will help you spot transactions that were entered incorrectly. It’s about seeing the bigger picture of your business. Understanding your numbers each month makes it easier to decide when to hire, when to raise prices, or when to cut spending. It also helps you avoid unpleasant surprises when cash runs short or taxes come due.

Why Hiring an Accountant Can Be Worth It

While many small business owners handle day-to-day bookkeeping themselves or with an employee’s help, an accountant can bring a level of expertise that’s hard to match.

A good accountant can:

• Set up your chart of accounts so your reports are meaningful and easy to interpret.

• Review your books regularly to catch errors and keep your financials clean.

• Provide tax planning advice based on your actual numbers, helping you avoid underpayment penalties and surprise tax bills.

• Analyze your performance to spot trends and suggest ways to improve profitability or cash flow.

• Guide you through growth or change, such as adding employees, taking on debt, or expanding into new products or locations.

If you feel unsure about how to read your financial reports or you don’t have time to dig into the numbers each month, partnering with an accountant can be a smart investment. They can give you peace of mind that your books are accurate, help you stay compliant with tax rules, and free you up to focus on running and growing your business.

6.) Compliance

Stay on Top of Compliance

Each month, check whether you need to file and pay sales tax. Review upcoming deadlines for payroll filings, quarterly estimated taxes, annual reports, or 1099 preparation. Missing a deadline can lead to penalties and interest, so staying ahead of these requirements saves money and stress.

Prepare for the Next Month

Take a few minutes to organize your records for the coming month. File or archive digital receipts and statements, back up your accounting data if it’s not already in the cloud, and jot down anything unusual that happened, like big purchases, refunds, or late customer payments. Keeping good notes now helps you and your accountant later.

Why This Monthly Routine Matters

Doing this work monthly — instead of waiting until year-end — saves hours of stress and prevents costly mistakes. You’ll have a clear picture of your cash flow, avoid surprises at tax time, and make better business decisions. Even if you hire an accountant, understanding this routine keeps you informed and in control.

You can use the file below to find out more about each of these topics. Also included is a handy checklist to ensure you stay on top of all bookkeeping tasks throughout the month.

Monthly Bookkeeping for Small Business Curated Accounting Solutions.

Download • 839KB

Need Help Getting Started?

If you’re feeling overwhelmed by bookkeeping or unsure whether your numbers are accurate, I can help. At Curated Accounting Solutions, I work with small businesses across Door, Kewaunee, and Brown Counties to set up clean, easy-to-maintain systems and provide the guidance you need to stay on top of your finances. Whether you want someone to review your books monthly or help you build a process you can manage on your own, I’d love to partner with you so you can focus on growing your business with confidence.