Monthly Bookkeeping Checklist for Small Businesses

Your Monthly Bookkeeping Routine (That Actually Works)

You know you should stay on top of your bookkeeping monthly, but what exactly should you be doing? Most business owners either skip months entirely or spend hours on tasks that don't really matter.

Here's a focused monthly routine that keeps your books current.

For plumbers, electricians, HVAC contractors, roofers, landscapers, and other service businesses in our area, this monthly check-in keeps your books up to date and helps you know whether you're actually making money.

Why Monthly Bookkeeping Matters

Monthly bookkeeping keeps you current so nothing falls through the cracks. When you maintain a monthly routine, you know what your tax situation looks like throughout the year instead of getting surprised in March or April. It's the difference between predictable taxes and scrambling to find money you didn't know you'd owe.

You'll catch errors while they're still easy to fix. You'll know your actual cash position instead of guessing. And your tax preparer won't charge extra fees for cleanup work.

Most importantly, you'll make better business decisions because you'll know which jobs are profitable, what your overhead actually costs, and whether you can afford that new equipment, additional help, or extra owner's draw.

The 4-Week Monthly Cycle

Week 1: Current Transactions

Review last week's bank transactions. Log into your banking center and categorize any new transactions from the past week. Don't let them pile up.

Check for any obvious errors or duplicates. Fix them now while you remember what they were for.

Update any recurring transaction rules if vendors have changed their names or if new regular expenses have started.

This isn't a deep dive, and you're not looking for perfection with DIY bookkeeping - just stay current with new activity so it doesn't build up.

Week 2: Quick Account Review

Spot-check your main accounts. Look at checking, savings, and your primary credit card. Do the balances look right compared to what you expect?

Review your biggest expense categories from last month. Are there any surprises? Did fuel costs jump? Did you spend more on materials than usual?

Check your receivables aging. Who owes you money and for how long? Call anyone who's over 45 days unless you've already worked out a payment plan.

This is about catching trends and problems before they get bigger.

Week 3: Invoice and Follow-Up

Send invoices for completed work. Don't wait until month-end. The sooner you invoice, the sooner you get paid. (Optional)

Follow up on any overdue accounts. A quick phone call is usually more effective than sending another invoice.

Review your project list if you're a contractor. What jobs are coming up? Do you need to order materials or schedule subcontractors?

Keep the revenue flowing and stay ahead of upcoming cash needs.

Week 4: Month-End Close (First week of the following month)

Reconcile your main checking account. This is the one non-negotiable task. Match your bank statement to your bookkeeping software line by line.

Review your profit and loss for the month. How did you do compared to last month? Compared to the same month last year?

Check your cash flow. Do you have enough to cover next month's expenses? Any big payments coming up?

Make note of anything unusual that you'll want to remember for tax time or business planning.

Monthly Tasks by Business Type

Service Businesses (Plumbing, Electrical, HVAC)

Track completed jobs against estimates. Which jobs were profitable? Which ones cost more than expected and why?

Review your parts and materials spending. Are you marking up materials appropriately? Are you tracking which jobs used which supplies?

Check your vehicle expenses. Update mileage logs. Review fuel and maintenance costs.

Follow up on any warranty work that might be billable to manufacturers or suppliers.

Contractors and Construction

Review active job costs weekly, summarize monthly. Are you staying within budget on current projects? Do any cost overruns need to be addressed with change orders?

Track progress billing. Send invoices for completed phases. Follow up on any delayed payments that might affect cash flow.

Review subcontractor costs and payments. Keep 1099 requirements in mind for year-end reporting.

Update equipment and tool expenses. Track purchases, maintenance, and depreciation for tax purposes.

Seasonal Businesses (Landscaping, Retail)

Track seasonal patterns. Compare this month to the same month last year. Are you trending up or down?

Manage cash flow for slow seasons. During busy periods, set aside money for slower months. During slow periods, monitor burn rate carefully.

Review inventory if applicable. What's moving? What's sitting too long?

Plan for seasonal expenses. Equipment maintenance during slow periods, inventory buildup before busy seasons.

Property Managers

Reconcile all tenant payments and owner distributions. Make sure rent collected matches what should have been collected.

Review maintenance and repair expenses by property. Which properties are costing more than expected?

Track any capital improvements separately from routine maintenance for tax and owner reporting.

Follow up on any outstanding tenant issues that might affect collections.

What to Actually Look For Each Month

Cash flow trends. Are you consistently short at the end of the month? Do certain months always create cash crunches?

Expense creep. Are costs gradually increasing without you realizing it? Phone bills, insurance, subscriptions that add up?

Profitability by job type. Which types of work make you the most money? Which jobs consistently cost more than estimated?

Seasonal patterns. Understanding your business cycles helps you prepare for slow periods and take advantage of busy ones.

Tax obligation changes. Has your income increased enough that you need to adjust quarterly estimated payments? (This One Is Very Important!)

Red Flags to Watch For

Bank balance doesn't match what you expected. This usually means transactions aren't being recorded properly or there are unauthorized charges.

Accounts receivable getting older. If the same customers show up on your aging report month after month, you have a collection problem.

Expenses in wrong categories. When you see materials costs in office supplies or fuel in equipment repairs, your categories need attention.

Missing invoices. Completed work that hasn't been billed yet. This is money sitting on the table.

Duplicate vendor entries. Multiple versions of the same supplier name cluttering your reports.

Making the Monthly Routine Stick

Pick the same time each month. First Monday, third Friday, whatever works - but be consistent.

Focus on what matters most for your business. Service businesses need to track job profitability. Contractors need progress billing. Seasonal businesses need cash flow management.

Don't try to be perfect. The goal is to stay current and catch problems early. Let your bookkeeper or tax preparer worry about perfection when you add them to the team.

Get help when you need it. If this routine consistently takes more than a few hours or if you're finding major problems every month, consider professional help. (That's Us)

When Monthly Isn't Enough

Some businesses need more frequent attention. Consider weekly bookkeeping if you have high transaction volume, multiple locations, complex job costing, or rapid growth.

You might also need professional help if you're consistently behind despite this routine, your business has grown beyond what you can handle alone, or you're dealing with complex tax situations. (Very Common)

Your Next Steps

Start this routine next month. Don't worry about catching up on old stuff first - just begin staying current going forward.

Block time on your calendar for each weekly task. Most business owners find it easier to do a little each week rather than trying to cram everything into one monthly session.

If you need help setting up systems that make this monthly routine easier, or if you're behind and want to get caught up before starting fresh, we work with small businesses throughout Quinlan, Hunt County, Rockwall, and the Dallas area.

Ready to establish a monthly routine that actually works? Contact us here to discuss how we can help you set up sustainable bookkeeping systems.