Chances are good that if you’re not an accountant or a bookkeeper, monthly bookkeeping tasks probably aren’t on your list of favorite things to do. However, unless you enjoy digging yourself out of a mound of receipts, possibly huge tax bills, and no lights because you forgot to pay the bill, keeping up with your bookkeeping tasks is an essential part of managing your life or a small business.
But don’t freak out, at the end of the day, bookkeeping is really about keeping track of what you owe, what’s owed to you, and making everything is categorized correctly to keep the IRS happy.
Should You Hire a Bookkeeper for your small business? Let’s walk through the bookkeeping process step by step and look at the key things bookkeepers handle each month.
5 Monthly Bookkeeping Tasks
Running a small business comes with a lot of moving parts, and keeping your finances in order can feel overwhelming at times. But it doesn’t have to be complicated. By focusing on a few key bookkeeping tasks each month, you can stay on top of your money and make smarter decisions for your business. Ultimately, you shouldn’t have to go back and get your own college degree in accounting to understand where your money is coming from, where it is going, and to make the best decisions for your business finances and maintain accurate financial records.
Whether you do this in house or use bookkeeping services, the goal is simple: clean books and useful reports.
Here are 5 bookkeeping tasks you (or your team) should be reviewing each month.
Reconcile your bank statements and credit card statements to your QBO
The first (and most obvious) bookkeeping task is reconciling your monthly bank statement and credit card statements. In other words, balancing the books.
This step helps you make sure every dollar coming in and going out has been recorded correctly, and that you’re not spending more than you realize. In simple terms, your bank accounts and bookkeeping records should all match up so your accounting records in the general ledger (GL) are accurate. Take a moment to confirm how much cash is really in the account, double-check that bank fees and charges are included and not duplicated, and fix any mistakes before moving forward, including cleaning up any uncategorized daily transactions, confirming any cash payments, and attaching source documents and financial documents in your designated accounting software.
If you use QuickBooks Online (QBO) all of this should automatically upload from your bank provided the connection is set up correctly but you will need to either set up “rules” for each type of recurring transaction or verify that expenses are being categorized correctly through bank feeds. It may take a little more time upfront, but setting up your QuickBooks or other bookkeeping software correctly can save you doing double-entry bookkeeping and help you maintain up to date and accurate financial reports and support reliable financial reporting. Rules, automation and artificial intelligence (AI) help, but they do not replace a monthly reconciliation. When accounts are reconciled each month, your profit and loss statement (P&L), balance sheet (BS), and cash flow statement (CFS) are more reliable for decisions and give you valuable insights, and help you make wise decisions moving forward instead of blindly guessing.
Collect any outstanding invoices
Nothing puts a halt on business operations and overall business growth like not getting paid the money you are owed. In the hustle and bustle of running a business, sometimes the financial data and all the business transactions get a little messy, so build a simple routine that keeps accurate financial records.
If you notice that an invoice has not been paid or an account has an outstanding balance, contact the account owner in a timely manner. If someone has missed the due date, send a friendly reminder or resend the invoice so it does not get lost in the shuffle and record your outreach in the accounting system for a clear audit trail and to meet legal requirements.Who knows, maybe their invoice got lost in their email or is stuck in a stack of bills. We’re all human and there are many well meaning people who need help keeping on top of the financial activities in their business as well.
If you run a small business that has a high number of invoices or accounts receivable (A/R) it might be helpful to add “check on unpaid invoices” to your daily bookkeeping tasks or daily accounts management as part of your daily routine.
Bonus tip! You can set up an automatic invoice reminder email inside QuickBooks Online (QBO) and many other online billing services.
Some small business owners even pick up the phone at this stage to get a quick update—it’s often faster and helps keep the relationship positive and communication open. Staying on top of late payments not only keeps your cash flow healthy, but it also shows customers you’re organized and paying attention to the ins and outs of your business. And remember, the sooner you follow up, the easier it usually is to collect what is owed.
Pay any outstanding invoices
Likewise, it’s just as important that you also pay any outstanding invoices and not let anything lapse over their due dates. Make a habit of reviewing accounts payable (A/P) each week and checking which invoices are coming due so you don’t miss a deadline. If you have recurring invoices that you can set on autopay for each payment cycle, review the bill or vendor statement before the payment runs. This can save you time and protect cash flow in the long run without disrupting daily operations.
Paying vendors, suppliers, and employees promptly keeps those relationships strong and helps you avoid late fees, service interruptions, and other bad business practices. If you ever do run into cash flow issues, a quick phone call or email to explain and work out a plan can go a long way—most vendors appreciate honesty and communication. Record payable entries promptly, code bills to the correct expense account, attach source documents, and record the payment in your accounting system for a clear audit trail from your business accounts and tie it to relevant invoices. When possible, separate who enters bills from who approves and pays them and keep petty cash reconciled monthly so small payments stay accurate. Staying current on your own invoices not only keeps your business running smoothly but also builds trust with the people you rely on.
Assess what areas of your business are the most profitable
A smart move for any business is figuring out which parts are making you the most money. Look at your products, services, or even specific customers, and see where you’re getting the best return for your time and effort. It’s all about spotting what’s really working and what is just taking up space.
Once you know your money-makers, you can put more energy into them and maybe scale back on the stuff that isn’t pulling its weight. Maybe that’s focusing more on a service that consistently brings in solid profits, or trimming offerings that cost more than they earn.
Paying attention to what’s actually making you money gives you a clearer picture of how to grow your business without burning out. Open your profit and loss statement (P&L) and review margins by product or service, then compare trends on your monthly reports. Tag sales and costs in the general ledger (GL) by class, location, or project so you can see financial performance at a glance and make simple next steps for business growth, and turn those numbers into valuable insights you can act on with department heads where it applies.
Assess Business Expenses
Keeping an eye on your monthly expenses does not have to be stressful. It is about knowing where your money is going and keeping accurate financial records. Take a few minutes each month to peek at things like rent, utilities, subscriptions, and supplies. You might be surprised at little things that add up or spots where you could save a bit.
When you check in regularly, it is easier to make smart decisions and avoid any money surprises. Maybe there is a subscription you are not really using, or a vendor whose costs have crept up. Open your accounting system and review expense accounts for unusual changes. Compare to last month and even last year to get a more holistic view of your finances. Attach source documents for a clear audit trail. Use your mobile app to capture receipts at the end of each day and keep software systems tidy so financial information stays clean for financial reporting. If you run payroll, review payroll liabilities and keep accurate payroll records up to date.
Catching these small things early keeps more cash in your pocket and helps your business run a little smoother. It is a simple habit that really pays off over time and keeps your profit and loss statement accurate.
Bonus Tip! Take inventory of products and supplies
Depending on the type of business you run and whether you have a dedicated office or storage space, the importance of a monthly inventory check will vary. If you stock products, compare what is on the shelf to your inventory records, review your point of sale system (POS), and fix any mismatches in the general ledger (GL). Post any needed cost of goods sold (COGS) adjustments so your profit and loss statement and balance sheed stay accurate. Document your count and any adjustments on a monthly basis so inventory records stay consistent. If you are service-based, a quick supplies check still helps you plan purchases and avoid rush orders.
Strong books make strong decisions. When monthly bookkeeping tasks are done on time, your financial statements stay accurate, your general ledger ties cleanly to your bank statements and credit card statements, and your monthly reports are easier to read. You head into tax season with a clear audit trail and fewer surprises at tax filing. If you want a cleaner accounting system in QuickBooks Online and a simple rhythm that fits your business, we would love to help with bookkeeping services and accounting so that your financial reporting stays consistent with tax regulations and financial regulations.
