Monthly Financial Checklist for Busy Entrepreneurs
- Charles Trostle
- Oct 16, 2024
- 3 min read
Effectively managing your finances is crucial to keeping your business not only running but thriving. This monthly financial reporting checklist is designed to give you clarity, control, and confidence in your financial health. Not all of the categories listed may apply to your specific business. For example, if your company only provides services, you may not need to manage inventory. Similarly, if you do not have employees, payroll tasks can be skipped.
By following this checklist, you can easily track income, control expenses, and make informed decisions to support the growth and success of your business.
Monthly Financial Checklist for Entrepreneurs
Revenue and Invoicing
Record all sources of income (sales, products, services, commissions, etc.).
Make sure all sales invoices have been sent and payments received.
Review and reconcile all sales transactions.
Generate and send out pending invoices.
Follow up on overdue payments.
Update your accounts receivable aging report.
Reconcile revenue accounts with bank deposits.
Expenses and Payments
Review and categorize all business expenses.
Make sure all vendor payments are up to date.
Pay outstanding vendor invoices.
Reconcile employee expense reports and reimburse as needed.
Cross-check expenses with bank and credit card statements.
Process and pay monthly loan payments.
Payroll and Personnel
Verify payroll amounts, including salaries, wages, and taxes.
Process monthly payroll.
Review and approve employee timesheets.
Make sure employee benefits and deductions are correctly processed.
Make necessary tax and benefit payments.
Check that all payroll-related payments are made.
Update personnel records if needed.
Bank and Cash Management
Review cash flow for the month and ensure a positive balance.
Reconcile all bank accounts and credit card statements.
Project future cash flow for the upcoming months.
Identify any cash flow shortages and find ways to address them.
Review and update cash flow projections.
Transfer funds between accounts as necessary.
Assess current cash position and liquidity.
Accounting and Bookkeeping
Update accounting software with all financial transactions.
Reconcile all bank accounts and credit card statements.
Make sure all financial records are accurate and up to date.
Prepare and review financial statements (balance sheet, income statement, cash flow statement).
Review any outstanding accounts receivable or accounts payable.
Close the books for the month.
Reconcile all balance sheet accounts.
Make any necessary journal entries for adjustments.
Tax Compliance
Calculate monthly tax liabilities (e.g., sales tax, payroll tax).
Set aside funds for upcoming tax payments.
Prepare and file monthly sales tax returns (if applicable).
Make sure all tax filings are up to date and ready for upcoming deadlines.
Review payroll tax obligations.
Keep track of quarterly and annual tax deadlines.
Financial Analysis and Planning
Compare actual performance to budgeted projections.
Calculate key financial metrics (e.g., gross profit margin, net profit margin).
Analyze key performance indicators (KPIs).
Update your financial projections.
Identify any trends or areas that need improvement.
Identify areas for cost savings or revenue growth.
Inventory Management
Review inventory levels to identify slow-moving or extra stock.
Conduct a physical inventory count.
Reconcile inventory records with actual physical counts.
Analyze inventory turnover and adjust ordering as needed.
Adjust inventory valuations as needed for accuracy.
Write off any obsolete or damaged inventory.
Bonus Tips
Documentation: Keep digital copies of all key documents and receipts for easy access and audit readiness.
Automation: Use accounting software like QuickBooks or Xero to automate repetitive tasks.
Professional Assistance: Consider consulting an accountant for detailed reviews and tax advice.
By following this checklist each month, you'll ensure that your financial reporting is accurate, timely, and provides valuable insights for decision-making. Remember, staying on top of your finances allows you to focus on what truly matters—growing your business and achieving your goals with the help of this monthly financial checklist for entrepreneurs.
As you work through the checklist, you may find that managing finances can be challenging, especially if you are self-employed. If you're a freelancer, contractor, or entrepreneur feeling overwhelmed by the complexities of managing your finances, we have a solution that can help. Our Self-Employed Income and Tax Tracker Worksheet is designed specifically to address the challenges faced by self-employed professionals. It can be used as a companion to your bookkeeping software like QuickBooks, or as a stand-alone tool for tax planning and revenue forecasting. This comprehensive tool offers a solution to help you streamline financial management, from tracking income and expenses to planning for taxes. Download the Self-Employed Income and Tax Tracker Worksheet today and take the first step towards gaining full control over your finances!
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