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  • Manaf Pottekattil

Complete bookkeeping process

Updated: Jun 21, 2022

As a small business owner, there are more important things than bookkeeping. Professional bookkeeping will not only help you ensure things run smoothly in your business, but also help you identify any financial issues. It helps you to manage your budget and keep the cashflow in balance.

If you want hassle-free bookkeeping, you usually need skills in excel or alternatively, you have to use relevant software for bookkeeping that makes your work & daily life easier. However, keeping a checklist will help you have an overview of your deadlines so that you can ensure digging up at the time of reporting.

“Making good judgments when one has complete data, facts, and knowledge is not leadership - it's bookkeeping”


A checklist will help you:

  • to stay organised

  • to not miss any important and time-consuming accounting tasks

  • to outsource those tasks to a qualified team

Bookkeeping checklist

  • Choose the right software that provides all reports for you - based on the nature of your business

  • Set up your software user friendly and based on quick actions. Example: entering all products & services, entering new customer data & vendor data, making sure all expense categories are entered - setting up the financial statements based on your accounting standards.

  • Review your cash position: It is very vital to monitor your cash flow - what comes in, what goes out. This helps to structure your expenses and be in financial dominance in your business. Simply sayed: monitor account receivables and payables, make sure cash comes in and goes out on time.

  • Send invoices & pay invoices: Make sure you send out all sales invoices and pay all open invoices. It helps you to avoid losing money or paying extra because you are delayed in payment. It also helps you monitor sales invoices that all customers paid before the due period. This helps you keep good cash inflow for your business.

  • Updated entries on bookkeeping software: If you keep updating make sure to not miss any entries such as expenses and purchase - it will help you to save time and energy.

  • Reconciliation: review and reconcile sales and expenses with the entries in your software and in your bank accounts, credit card accounts, PayPal account or google pay etc.

  • Upload your receipts: If you’ve made any business purchases during the week, you’ll want to scan your receipts and upload them to your bookkeeping software.

  • Payroll and payroll tax payments - make sure to follow through

  • Review your balance sheet & income statement monthly. It helps you to know your financial position, and to create a strategy to improve the financial position of your business based on facts.

  • Calculate the tax: it helps you to be prepared and headache free by the time of submitting your taxes.

  • Collect any outstanding debts and close out your books: If you have any open invoices or outstanding debts, you’ll want to collect them before the end of the year. Once you’ve collected any outstanding payments, you can close your books for the year.

  • Create year-end financial reports: once you close the books, make sure to prepare your financial reports.

  • Gather the necessary information for your taxes: In addition to your year-end financial report, your tax professional will need a variety of additional documentation in order to accurately prepare your tax returns and move forward with your tax filings (like your bank statements, payroll reports, and other financial statements). Make sure you gather all that information at the end of the year and have it ready to pass off to your accountant.

  • File your tax return. Filing your business taxes is one of the most important annual bookkeeping tasks, so make sure you file (and file on time and before any relevant tax due dates!) each year.

Looking for advice from experts? Please feel free to chat with us.

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