Month-end Bookkeeping Bliss: 7 Tips On How To Save Time, Money & Your Hair!

Picture This:

It’s the end of the month, and you’re sipping your favorite beverage while catching up on some light reading. Ok, depending on who you are, maybe reading sounds more stressful than relaxing, but the imaginary point is…you’re feeling on top of the world because your bookkeeping is as tidy as a freshly cleaned room. No more second-guessing if you’ve been profitable for the month or crossing your fingers, hoping you’re not overspending. You KNOW your numbers!

Sounds dreamy, right?

Well, now it can be your reality!

Think of it as turning your monthly financial chores into a smooth and satisfying routine. So, grab that favorite beverage, settle in, and let’s dive into the Top 7 Month-End Bookkeeping Tips for Small Business Owners that will save you time, stress, and maybe even a few gray hairs (unless you’ve already earned those silver displays of wisdom, then this will help you keep them)!

1.) Account for Expenses & Income: Start by recording all your monthly expenses and income. It’s like writing everything down in your diary – except this diary tells you where your money went and how much you have left over. Doing this gives you a clearer picture of your financial health and helps you make smarter decisions.

2.) Reconcile Bank Statements: Imagine your bank statements and bookkeeping records are two best friends. They should always be in sync! We beg of you: please reconcile your bank statements…each month, every month. Make sure all transactions match between your bookkeeping records and your bank statements. This will help you spot any sneaky discrepancies or errors.

3.) Review Outstanding Invoices: Next, it’s time to check on those outstanding invoices. Go through your accounts receivable and follow up on any still hanging out there. It’s like making sure your friends return those borrowed lawn tools – you need your stuff back! Keeping on top of this will help maintain your cash flow and avoid bad debts.

4.) Capture & Organize Receipts: Now, let’s get those receipts in order! Save all necessary business receipts for expenses you plan to deduct for the month come tax time. And for extra brownie points, organize them in the cloud. Trust us: come tax season, you’ll feel like a superhero when all your receipts are just a click away.

5.) Set Aside Money for Taxes: No small business owner likes paying taxes, but we all must do it. Set aside money each month, especially if you’re paying quarterly estimated taxes. Think of it as putting away a little bit of candy every month so you’re not left with an empty jar when the IRS requires a treat. Plus, it will help you avoid late fees or penalties when the funds are set aside and ready to go, which is a bonus! **We are not tax advisors – please run any tax questions by your tax pro.

6.) Create Financial Reports: Run important financial reports like how much you earned and how much you spent (also called a Profit & Loss Statement). The Balance Sheet is another useful one to run. These reports are like your old-school report cards – you might be a little scared to look at them, but they tell the honest truth about how your business is doing, which allows you to make smarter financial decisions. Also, we recommend running reports showing the last three months so you can easily compare and spot trends. 

7.) Plan for Next Month: Use the end of the month to set financial goals for the upcoming month. It’s like planning your next big adventure! This will help you stay proactive in managing your business finances and keep you on track for success. It also makes it easier to handle any course corrections if the ship is veering in a direction you don’t like.

Remember, good bookkeeping isn’t just about following rules – it’s a superpower that helps you make better decisions and grow your business. 

Share this with your small business friends so you can be that awesome person who helps them kick their month-end bookkeeping woes to the curb!

If you need help with your monthly bookkeeping routine, we’ve got your back! Shoot us a message on our contact page OR nab your strategy session below 👇

Amanda Wylie

Owner/CEO

I love the Lord and live way out in the country with my wonderful husband and my 8 children still at home. Besides everything bookkeeping, my passions and interests include gardening, chickens, herbal remedies, coffee and learning new things!

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