Maintaining organized business books is not a task that should be left solely for the end of the fiscal year. Postponing bookkeeping entries until tax season results in backlog bottlenecks, errors, and missed deductions.
1. Reconcile Bank and Credit Card Statements
Match every transaction in your bookkeeping software against your monthly bank statements. Isolate outstanding checks, deposit clearances, bank service charges, or card interest fees. Reconciliations confirm that your ledger matches your physical bank account balances.
2. Categorize Transactions
Assign every credit card charge, check, and cash payment to its correct expense or asset category. Keep personal expenses separate from your business accounts. Review automatic vendor categorizations to catch common sync errors.
3. Issue and Monitor Client Invoices
Review outstanding customer invoices. Follow up on past-due balances, issue statement reminders, and record incoming checks or credit card payments against open invoice rows. Keeping receivables updated protects your operating cash reserves.
4. Catalog and Organize Receipts
Under US tax guidelines, businesses must maintain documentation for all business deductions. Match digital or paper receipts to corresponding credit card transactions in your files. Archive folders securely by month.
5. Review Outstanding Bills (Accounts Payable)
List all vendor invoices and utility bills. Schedule payments to avoid late penalties and take advantage of supplier discounts. Keeping payable entries updated prevents low-balance surprises.
6. Run standard P&L Reports
Generate profit and loss statements at month-end. Compare current expenses and gross revenues against previous months or budget limits to identify changes in margins.
Need Bookkeeping Support? Core Ledger Works assists small businesses to reconcile statements, organize receipt files, and balance books month-by-month. Contact our Parma, OH office today to request an evaluation.