Tier II - Monthly Bookkeeping (151-300 Transactions)
Zen Money's monthly bookkeeping checklist remains a timeless and essential tool for any business. The core tasks for maintaining accurate financial records do not change significantly month-to-month or year-to-year.
Monthly Bookkeeping Checklist
Daily/Weekly Activities (Often Rolled Up for Monthly Review)
Process Sales/Revenue:
Record all sales, invoices issued, and cash receipts.
Deposit all cash and checks received.
Record Expenses:
Enter all vendor bills, employee expense reports, and credit card charges.
Ensure all purchase receipts are collected and categorized.
Key Monthly Tasks (Typically Performed at Month-End or Early Next Month)
Collect All Financial Data:
Gather all bank statements, credit card statements, loan statements, and records of cash transactions for the month.
Record All Transactions:
Ensure every single transaction for the month is entered into your accounting software. This includes:
All income streams (sales, service revenue, interest earned, etc.).
All expenses (rent, utilities, supplies, marketing, payroll, COGS, etc.).
Any capital contributions or owner draws.
Categorize Transactions Accurately:
Review all entered transactions and assign them to the correct accounts based on your Chart of Accounts.
Address any "uncategorized" or "suspense" transactions immediately.
Strictly separate personal expenses from business expenses.
Bank Account Reconciliation:
Compare every transaction in your accounting software to your official bank statements for all business checking and savings accounts.
Ensure the ending balance in your books exactly matches the bank statement.
Investigate and resolve any discrepancies (missing transactions, incorrect amounts, bank errors).
Credit Card Reconciliation:
Reconcile all business credit card statements against your accounting records.
Verify all charges and payments.
Loan Account Reconciliation:
Verify loan balances and interest payments in your books against loan statements.
Petty Cash Reconciliation (if applicable):
Count physical petty cash on hand and reconcile it with the petty cash ledger, ensuring all disbursements are documented with receipts.
Generate Key Financial Statements:
Profit & Loss Statement (Income Statement):
See your revenue, expenses, and net profit/loss for the month.
Balance Sheet:
Get a snapshot of your assets, liabilities, and equity at the end of the month.
Cash Flow Statement:
Understand the movement of cash in and out of your business.
Backup Financial Data:
Ensure your accounting software data and all digital financial records are regularly backed up to a secure off-site or cloud location.