Good bookkeeping is essential for small business success. This comprehensive checklist will help you ensure your finances are in order, allowing you to make informed decisions and grow your business with confidence.

I. Setting Up Your Bookkeeping System:

• [ ] Separate Business and Personal Finances: Open a separate bank account and credit card for your business.
• [ ] Choose the Right Accounting Software: Research and select software that meets your needs (cloud-based or desktop).
• [ ] Establish a Chart of Accounts: Create a categorized list of all your business's financial accounts.
• [ ] Set Up a System for Tracking Income: Implement a process for recording sales, invoices, and payments received.
• [ ] Set Up a System for Tracking Expenses: Establish a method for recording all business expenses, including receipts, invoices, and bills.

II. Daily/Weekly Bookkeeping Tasks:

• [ ] Record all transactions: Enter all income and expense transactions into your accounting software promptly and accurately.
• [ ] Categorize transactions: Classify each transaction according to your chart of accounts.
• [ ] File receipts and invoices: Maintain an organized system for storing physical and digital financial documents.
• [ ] Invoice customers promptly: Send out invoices as soon as a job is complete or a service is rendered.
• [ ] Pay bills on time: Schedule and pay bills to avoid late fees and maintain good vendor relationships.

III. Monthly Bookkeeping Tasks:

• [ ] Reconcile bank and credit card accounts: Match transactions on your bank statements to your accounting records.
• [ ] Review income and expense reports: Analyze your financial performance and identify trends.
• [ ] Calculate sales tax: If applicable, calculate and remit sales tax.
• [ ] Review accounts receivable: Follow up on any outstanding invoices.
• [ ] Review accounts payable: Ensure all bills are paid and keep track of upcoming payments.
• [ ] Update inventory (if applicable): Track inventory levels and make adjustments as needed.

IV. Quarterly Bookkeeping Tasks:

• [ ] Review quarterly financial statements: Analyze your financial performance for the quarter.
• [ ] Estimate quarterly taxes: If applicable, estimate and pay quarterly taxes.
• [ ] Review and adjust budget: Compare actual performance to your budget and make necessary adjustments.

V. Annual Bookkeeping Tasks:

• [ ] Prepare annual financial statements: Generate year-end reports, including profit and loss statement, balance sheet, and cash flow statement.
• [ ] Prepare for tax season: Gather all necessary financial documents and work with your tax professional.
• [ ] Review and update chart of accounts: Ensure your chart of accounts still reflects your business needs.
• [ ] Review and update bookkeeping procedures: Identify areas for improvement and make necessary adjustments.

VI. Ongoing Bookkeeping Best Practices:

• [ ] Maintain accurate and organized records: Keep all financial documents in a safe and accessible location.
• [ ] Use consistent bookkeeping methods: Stick to a consistent system for recording and categorizing transactions.
• [ ] Regularly back up your financial data: Protect your data by backing it up regularly, either to a cloud service or an external hard drive.
• [ ] Seek professional help when needed: Don't hesitate to consult with an accountant or bookkeeper if you have questions or need assistance. Axzel Bookkeeping can help with transaction categorization and report generation. Visit axzelbookkeeping.com to learn more.
• [ ] Stay up-to-date on tax laws and regulations: Keep informed about changes in tax laws that may affect your business.

VII. For Businesses with Employees:

• [ ] Process payroll accurately and on time: Ensure accurate calculation and timely payment of employee wages and taxes.
• [ ] Maintain payroll records: Keep detailed records of employee hours, wages, deductions, and benefits.
• [ ] Comply with payroll tax regulations: File and pay all required payroll taxes.

By following this checklist, you can establish strong bookkeeping practices that will support your business's financial health and long-term success. Remember, good bookkeeping is an investment in your future.