Your Monthly Bookkeeping Checklist for Small Business

Step 1: Gather Your Money Papers

First, you need to find all the papers that show where your money went and where it came from. Think of it like collecting all your drawings before you show them to your parents.

• **Bank Statements:** These papers show all the money that went in and out of your bank account.
• **Credit Card Statements:** If you use a credit card for your business, get these statements too.
• **Receipts:** These are like little notes that say what you bought. Keep them safe!
• **Invoices:** These are bills you sent to people who owe you money.
• **Bills:** These are bills you need to pay, like for your internet or rent.

Step 2: Put Your Money Info into One Place

Now, you need to put all that money information into a special place. This could be a special computer program like QuickBooks that LedgerDude can help you with, or even a simple spreadsheet. It's like putting all your toys in one toy box so you can find them easily.

• **Enter all your sales:** This is all the money your business made.
• **Enter all your expenses:** This is all the money your business spent.
• **Make sure everything matches:** Check that the numbers in your program or spreadsheet match your bank and credit card statements. If your bank says you spent $100 on art supplies, make sure your record says the same.

Step 3: Pay Your Bills and Chase Your Money

This step is about making sure you pay what you owe and get what people owe you. It's like remembering to water your plants so they don't get thirsty and making sure your friend returns your toy after they borrow it.

• **Pay your business bills:** Make sure you pay on time so you don't forget or have to pay extra money later. Think about your electric bill or your rent.
• **Send reminders for unpaid bills:** If someone hasn't paid you yet, send them a friendly reminder. It's okay to ask for the money you're owed!

Step 4: Check Your Money Report (Reconcile)

This is a super important step where you make sure your bank's records and your business's records match up perfectly. We call this 'reconciling.' It's like checking that the number of cookies you baked matches the number of cookies on the cooling rack.

• **Match your bank account:** Look at your bank statement and your records. Do all the numbers line up? If your bank says you have $5,000, does your business record say $5,000 too?
• **Match your credit card accounts:** Do the same for your credit cards. This helps you spot any mistakes or money that went missing.

Step 5: See How Your Business is Doing (Review Reports)

Once everything is neat and tidy, you can look at some special reports that tell you how your business is doing. These reports are like your school report card, but for your business's money.

• **Profit and Loss Report:** This report tells you if your business made more money than it spent (a profit!) or spent more than it made (a loss). You want to see a profit!
• **Balance Sheet:** This report shows what your business owns (like cash or equipment) and what it owes (like loans).
• **Cash Flow Statement:** This report shows how money is moving in and out of your business. It helps you see if you have enough cash to pay your bills.

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