13 Top Your Business Finances: A Comprehensive Monthly Checklist

Hello, fellow small business owners and entrepreneurs! Carrie here from My Cloud Bookkeeping, dedicated to helping you keep your books in order and empowering you to make informed decisions for your business. Today, I want to guide you through a comprehensive monthly checklist that ensures your financial information is accurate and up-to-date. This checklist is designed to be helpful for users of QuickBooks Online, but the principles can apply to various accounting systems.

Business Finances Checklist

1. Start with Transaction Review

Before diving into the checklist, make sure all transactions from the prior month are entered. This includes sending out invoices, recording progress billings, and entering bills from subcontractors or suppliers.

2. Balance Sheet Analysis

1. Assets: Understand what your business owns. Bank accounts, accounts receivable – these are your assets.

2. Liabilities: Know what your business owes. This leads to the Equity section, representing income earned, owner contributions, or shares.

Tip: Regularly reconcile your bank and credit card accounts to catch any discrepancies and ensure accurate financial data.

3. Dive into Accounts Receivable

Use the Accounts Receivable Aging Summary to track who owes you money. Promptly follow up on outstanding amounts to maintain healthy cash flow.

4. Manage Inventory

If your business involves selling physical products, regularly count your inventory. Accurate inventory numbers are crucial for determining the cost of goods sold and, ultimately, your gross profit.

5. Evaluate Investments

If applicable, assess the value of your investments. Record any unrealized gains or losses for a comprehensive financial picture.

6. Address Prepaid Expenses

If you've paid for services or items in advance, like annual insurance premiums, allocate these expenses monthly. This ensures accurate profit representation each month.

7. Check Undeposited Funds

Ensure undeposited funds are promptly deposited to avoid discrepancies in your financial statements.

8. Fixed Assets

For significant purchases, like vehicles or equipment, regularly check their values. Adjust for depreciation or amortization as needed.

 9. Review Accounts Payable

Run an Accounts Payable Aging Summary to verify outstanding bills. Confirm accuracy and follow up on any discrepancies.

10. Reconcile Credit Cards

Regularly reconcile credit card accounts to catch any discrepancies and ensure accurate financial reporting.

11. Address Sales Taxes and Payroll Liabilities

Depending on your location, ensure sales taxes and payroll liabilities are accurately recorded. Seek guidance from local tax experts to navigate these complexities.

12. Monitor Loans and Notes Payable

Regularly check loan and notes payable balances. Ensure payments are accurately recorded to maintain an accurate financial picture.

13. Finalize with the Profit and Loss Statement

Run your Profit and Loss statement to confirm the accuracy of your net income. Analyze income and expenses, identifying any misallocations or discrepancies.

Conclusion

By diligently following this monthly checklist, you'll not only keep your financial records in order but also gain valuable insights into your business's financial health. Remember, accurate financial information is the foundation for making informed decisions and steering your business towards success.

If you found this checklist helpful, don't forget to like and subscribe. Feel free to reach out with any questions or topics you'd like me to cover in future videos. Here's to mastering your business finances and making sound decisions!

*Cheers,

Carrie*