This guide explains the regular monthly work a bookkeeper does. It covers all important tasks for managing a business's money, like income, expenses, checking bank records, making reports, and talking with clients. It includes all the main jobs and practical steps for keeping good financial records each month.
Enter Paper Checks: Put details of any paper checks written into the accounting software (like QuickBooks Online - QBO) before they show up in the bank's online records (bank feed).
Download Bank Activity: For banks not linked to QBO, get the transaction files from the bank's website and upload them to QBO.
Sort Transactions: Look at all items from the bank. Put each one into the right category (like "office supplies" or "rent"). Use rules in the software for common vendors, or do it manually.
"Ask My Accountant" Items: If you don't know what a transaction is for, mark it as "Ask My Accountant." Find out what these are from the client every month or two.
Match Bank Statements (Reconcile): Every month, compare the bank statement's ending balance with the balance in QBO. Make sure they match.
Savings Account: If there isn't much activity, you can match the savings account statement every two or three months using a simpler checklist.
Additional Information: How to import checks into QuickBooks, How to import bank statements into QuickBooks.
Get Credit Card Statements: If credit cards aren't linked to QBO, download the statements from the credit card company's website.
Sort Credit Card Expenses: When a credit card payment is made, don't just record the whole payment as one expense. Instead, list and categorize each individual purchase made with the credit card.
Additional Information: How to import credit card transactions into QuickBooks.
Set Up Email for Receipts: Give clients a special QBO email address. They can send pictures or files of receipts to this address, and QBO will save them.
Use QBO Mobile App: Clients can take photos of receipts with their phone using the QBO app and upload them.
Match Receipts to Bank Items: In QBO, connect the saved receipts (from email or photos) to the matching transactions from the bank or credit card.
Ask for Missing Receipts: Create a list of bank or credit card transactions that don't have a receipt. Ask the client to provide the missing ones.
How Clients Can File Receipts (If Not Digital):
Small business: Keep receipts in folders, one for each month.
Larger business: File receipts by the name of the company they paid (vendor name).
Additional Information: How to scan receipts into QuickBooks.
Keep Income Records: Collect records (paper or digital) of all money earned. This might be broken down by employee, type of service, or department.
Split Deposits in QBO: If one deposit in the bank includes money from different sources (e.g., sales of different products), use the "split" feature in QBO to record each income type correctly.
Use Shared Spreadsheets for Income Details: For detailed tracking (like cash vs. checks, or income by different classes or employees), use shared spreadsheets (like Google Sheets).
Additional Information: How to import deposits into QuickBooks.
Pay Vendors: Keep track of bills from suppliers (vendors). Sort them by expense type. Schedule payments or write checks.
Pay Back Staff (Reimbursements): If staff use their own money for business costs, write checks to pay them back. Record these in QBO.
Get Approval for Bills: Use a system for getting bills approved before paying them. This could be a digital system or getting a signature on paper copies, depending on what the client prefers.
Handling Paper Bills:
Collect paper bills that have been approved for payment each week.
Enter them into QBO. Write/print checks or pay online.
Make sure different people are responsible for approving bills and paying them to reduce the risk of errors or fraud.
Additional Information: How to import bills into QuickBooks.
Send Invoices to Clients: Create and send bills (invoices) to customers. You can do this in QBO or another way, depending on the setup.
Record Payments Received: When customers pay, match the payment to the correct invoice in QBO.
Check Who Owes Money: Look at reports that show which invoices haven't been paid. Send reminders for late payments. Give clients summaries of money owed to them.
Getting Information for Invoices:
Clients might provide details on shared spreadsheets or through time-tracking systems.
Use QBO's tools to bill customers by the hour or a set fee.
Additional Information: How to import invoices into QuickBooks.
Send Hours to Payroll Company: If the client uses a company like Gusto or ADP for payroll, send them the employee hours and any pay changes.
Enter Payroll Manually (If Needed): Sometimes, you might need to enter all payroll details into QBO yourself, including wages, taxes, and other deductions.
Record Payroll Summaries: After the payroll company processes payroll, put a summary of it into QBO. This summary should show total pay, money paid to employees, taxes, and other money kept for benefits.
Track Money Owed for Payroll: Make sure money taken from paychecks (like taxes or retirement contributions) is correctly listed as money the business owes until it's paid to the government or provider.
Spreadsheet for Payroll Details (If Needed):
Keep records of hours worked each week or month.
Track benefits, money taken out of pay, and retirement plan amounts.
Keep this information private and secure.
Profit & Loss Statement (P&L): Each month, create and send a P&L report. This shows how much money the business made and spent.
Balance Sheet: Create and send a Balance Sheet report every month or three months. This shows what the business owns and what it owes.
Custom Reports: Create other reports if needed, like comparing this year to last year, showing trends over several months, or performance by different parts of the business.
Visual Reports: Use QBO's "Business Performance" dashboard to show financial information in charts and graphs, making it easier to understand.
Board Reports: If needed, prepare simple reports for company leaders or a board of directors.
Finish December's Books: Carefully check and finalize all records for the end of the year.
Check Inventory (If Any): If the business sells products, match the actual stock with the records.
Label Large Purchases as Assets: Big purchases (like computers or furniture) should be recorded as assets (things the business owns) so their cost can be spread out over time (depreciation).
Handle Special Money (PPP Loans, Grants, etc.): Understand how to record unusual money items like government loans (e.g., PPP), grants, or large bonuses. Check with an accountant if unsure.
Note Past Issues: Keep a list of any questions or problems from the previous year's tax accounting so you can handle them better this year.
Review "Ask My Accountant" Items: Schedule calls or send emails to clients to get answers about transactions you weren't sure about.
Check With Owners on Big or Unusual Items: Ask the owner about any very large expenses, changes in who they are paying, or anything that looks unusual.
Keep Emails Organized: Keep your email inbox tidy so you can find important information easily.
System for Notes (e.g., Excel or Asana):
Bills notes: Write down how to categorize bills from certain vendors if it's tricky.
Problems notes: Keep track of any difficulties in the workflow or areas that aren't efficient.
Goals notes: Write down any suggestions from the client or their business goals.
Marketing: If you have your own bookkeeping business, spend time networking, asking for client reviews, or sharing helpful information (like on YouTube or a newsletter).
Track Your Time: See how many hours you spend on each client each month. This helps you check if your prices are fair and if you are working efficiently.
Improve Your Tools: Think about moving some tasks from spreadsheets to tools like Notion, Asana, or ClickUp to work better.
Organize Your Workspace: Keep your office desk and computer files tidy to help you work better.
This clear monthly process helps keep a business's financial records accurate and useful.
Doing all these monthly bookkeeping tasks carefully is very important for a business. It helps keep the money records straight. Apps like SaasAnt Transactions can make a lot of this work much faster and easier by automating many of the steps, such as uploading transactions or entering detailed data from spreadsheets into your accounting software. This means less time spent on manual entry and more time for checking important details.