Monthly Bookkeeping & Record Keeping: Closing Your Books
The importance of record keeping cannot be emphasized enough. Consistent record keeping and bookkeeping are VERY vital to the health and life of your business. Closing your books every month is an important business bookkeeping task that should be part of your monthly routine. Closing your books monthly allows you to analyze data on a frequent basis, be more organized, gauge your tax obligation and you’ll have an easier time preparing your books to give to your tax preparer at the end of the year.
Here are key tasks to implement during your month-end close process:
Reconcile the bank and cash G/L accounts. Complete a bank reconciliation (your books' transactions vs the bank statement) using your bank statement as your support document.
Run, review and analyze your P&L statement and your balance sheet. Ensure all transactions are categorized into the correct accounts.
Go into your settings and officially close the books for the current period!
For a full list of monthly quarterly and annual bookkeeping tasks, click below for a copy of my ebook, “Chasing Papers, A Solopreneur’s Guide on Record Keeping and Financial Management.