Your accountant will love you for it!
Bookkeeping is a crucial part of your business and you need to keep on top of it. Here are 5 bookkeeping tasks that you should do each month:
1. Create a Digital Storage System
Save all of your business receipts and documents digitally. This makes it so much easier for tax time! You can use Google Drive or Dropbox. If you are using Accounting Software, like Quickbooks Online, they may have a way to upload images to the software. Then all you would need to do is take a photo.
2. Reconcile your Bank Account
This is similar to balancing your checkbook. It is the process of matching your transactions you entered into your accounting software or spreadsheet to your bank statement or credit card records.
3. Categorize your Income and Expenses
If you are using accounting software that downloads from your bank account, take the time to assign each of the transactions to categorize them. This makes things easier when running reports.
4. Run Income Statement and Balance Sheet Reports
If you are using accounting software, these are standard reports that you can run at any time. It is important to run these reports so that you can determine how much profit you are making each month.
5. Review
Compare your actual to your goals. Do you meet your income goals? Did you exceed them? How does this month compare to last? Use this as a guide to make your goals for next month.