Small Business Month End Checklist
A conversation with a client inspired this blog post so I hope it is of use to you too! They wanted a checklist of things to do at the end of the month so here you go:
Ensure you have sent all your customers their invoices .. they won't pay if you don't send them!
Have you captured all your bills and receipts for the month? If you are a Xero user then Hubdoc is included for free - I prefer Apron but mainly because when I am doing the bookkeeping for lots of clients it's more user friendly and a bit faster, but if you’re doing your own there's no real need to pay for something extra.
Check for personal spend in your business account - it happens, so if there is any make sure it's coded to drawings if you are self-employed or the directors loan account if you run a limited company.
And check the other way around too - have you paid for anything that's business related on your personal card? You want to get that into your business account ASAP too. (And remember, to repay back your directors loan account, if it's overdrawn that's going to cause issues further down the line).
Reconcile your bank account (or accounts) - make sure every transaction is matched up and recorded correctly so that you can have meaningful information to hand.
Run a P&L account - OK, it's not the same as if you have a bookkeeper or accountant helping you as we do some "accounting magic" to ensure things like costs are reflected in the correct period, assets are treated correctly etc, but it will give you a good enough idea of how things are going and if you compare it to previous periods you might notice if something looks odd and off to prod a bit further and see why.
Estimate and set aside the cash for your tax bill – future you will thank you, I promise.
Yes, DIY-ing it isn't the same as having professional help, but not everyone can afford to have a bookkeeper or accountant help them on a monthly basis, so I hope this is of use if you are looking after your own bookkeeping.
Rachael