How to Stay Organized for Monthly Bookkeeping: Simple Processes for Small Business Owners

Staying organized month to month is a common struggle for many small business owners, and understandably so! Not only are you taking care of your daily operations, but you’re keeping track of all the documentation and financial transactions that go along with it. 

The key to staying organized is to create simple, repeatable processes you can execute each month. This takes a lot of the guesswork out of your monthly bookkeeping and reduces decision fatigue for a more streamlined, effective process.

This post contains quick tips for simple but impactful processes you can incorporate into your workflow each month.

Simplify your bookkeeping tasks by sticking to one solution 

Wherever possible, stick to one tool to get the job done. That could mean:

• Creating one checklist or process that covers all necessary tasks, rather than referring to multiple lists.

• Using one accounting software wherever possible, rather than one system for bookkeeping and another for tracking inventory, job costing, or other data points.

• Creating one document storage system so that you don’t have to look several places for the information you need.

• Using one file naming convention that works and makes sense for you.

Looking in many places for a document — or having to decide between many processes — contributes to the feeling of disorganization, so the aim is to eliminate that decision fatigue.

Keep your bookkeeping documents organized and accessible

One thing that overcomplicates the process is the volume and variety of documents you need to deal with each month. They’ll come in emails, paper receipts, PDF invoices, and many more formats, and they can be tough to keep track of.

An easy way to keep everything organized is to digitize all of your documents by default, and then keep them in a consistent filing system. 

Digitize as you go whenever possible to minimize the number of times you need to touch a document. Tips for digitizing: 

• Most computers include a “Print-to-PDF” feature which quickly turns images, Word documents, and emails into PDFs. This makes it simple to keep all files in the same format.

• Many smartphones have apps that will turn images into PDFs quickly as well. When you’re on the go, take a photo of paper documents or receipts to digitize them efficiently.

• Using a cloud-based storage system such as Dropbox or OneDrive allows you to save documents from any device, further reducing the number of times you need to handle them. 

• Use a consistent date-based naming convention for your files so that they’re easy to find when you need them. Naming by date means they’ll more closely match the transactions on your bank and credit card statements.

It’s not always possible to digitize documents while you’re on the go; in that case, you might set a weekly reminder for yourself to address any documents that you collected during the week.

Whether you prepare your own books or work with a bookkeeper, you can find more tips on documentation for bookkeeping in this post: How to Put Your Monthly Package Together for Your Bookkeeper (and What to Include)

Break down tasks into weekly and monthly categories

When you have limited transactions, you might find it sufficient to touch the books once per month. If you’re finding this creates a lot of month-end work, or you require more updated information, you may prefer to complete tasks throughout the month. 

Weekly processes that can support your monthly bookkeeping include:

• A brief look at your accounts online to check for any unusual transactions

• Digitizing and organizing your invoices, receipts, and any other information from the week

• Logging your vehicle mileage

This will set you up for a smooth monthly bookkeeping process. 

Create a simple monthly bookkeeping routine

You could create a step-by-step checklist to walk through at the same time each month, and add it to your calendar. 

One way to approach monthly bookkeeping is to block off an afternoon — for example, on the first Friday of each month. Your process on that day could be as simple as:

1. Getting your documents organized. Gather all of your statements, receipts, and invoices in one place. (You might have already done this during the week!)

2. Starting with data entry from your statements. Pull out your bank and credit card statements, and:

• If you’re fully manual, enter each transaction. 

• If your financial institutions are linked to your accounting software, ensure statements have been imported and that transactions are categorized accurately.  

3. Checking your month-end cash and credit card balances. Do the month-end balances for the cash and credit card accounts in your accounting software agree to the statements? If not, a reconciliation might be required.

4. Reviewing for any unusual transactions. Did anything odd arise from your reconciliations? Are any categories higher or lower than usual? Are you seeing negative numbers in your financial reports where there shouldn’t be? 

5. Tracking any unpaid bills or invoices. Are there unpaid invoices you need to follow up on? Are there any outstanding bills you need to pay? These are key areas to keep on top of each month for a healthy cash flow.

The point isn’t to document every single step, but to get you into a logical workflow so that you’re not left wondering what to tackle first.

Review your financial statements

Sometimes feeling disorganized comes down to feeling less on top of your financial performance than you’d like. Add some additional time to your monthly routine to review your balance sheet, profit and loss statement, cash balance, and aged accounts payable and receivable listings.  

This review helps you feel more organized and builds confidence in your business’s finances.  

Could you use some extra support?

If you’re doing your own books, we’re cheering you on! 

For more guidance on preparing your own books, you might enjoy: Your Guide to Stress-Free Bookkeeping: Streamlining Your Systems and Avoiding Overwhelm

When you’re ready to expand your team to include a bookkeeper, we would be happy to meet with you. We strive to be more than a bookkeeping service — we’re a partner who is invested in supporting you and your business exactly as you need.