Monthly Bookkeeping & Accounting Services: Organization and structure are critical for every firm to ensure that operations function properly. Having correct accounting practices to assist you in measuring the health of your cash flow and operations is part of being a well-managed business.
Bookkeeping is the appropriate recording of financial transactions connected to an entity’s commercial activity. Bookkeeping is the permanent recording of financial transactions in an entity’s books of accounts in a correct manner so that their financial impact on the entity’s company can be understood. There is a distinction to be made between the phrases “bookkeeping” and “accounting.”
When you had a smaller business, monthly bookkeeping and accounting services may have sufficed to preserve accurate financial records and estimates. However, your firm is expanding, and monthly bookkeeping—activities such as creating a monthly cost report—is only one part of bookkeeping tasks that appear to demand daily attention.
In this blog, we will discuss the significance of accounting for your business. The following is a list of critical jobs that we believe should be completed once a month.
What exactly are monthly bookkeeping and accounting services?
You may determine that specific bookkeeping duties should be completed daily, weekly, or monthly, depending on the size of your firm and your personal preferences. Monthly bookkeeping activities typically entail documenting and tracking financial transactions, reconciling all accounts, and generating all required reports. All of these responsibilities help to ensure that your books are correct and up to date, as well as demonstrate the financial health of your firm.
The following is a simple monthly bookkeeping and accounting checklist of things you may do to keep your business functioning smoothly on a monthly basis.
Invoices must be prepared and sent. You are paid through invoices! Keeping track of your invoices is beneficial to both your company and your consumers. An invoice delivered when your services are still fresh in the minds of your customers is more likely to be paid. In practice, the earlier you send out bills, the sooner you’ll be paid because the clock starts ticking.
Keep track of consumer billings.
Maintain the accuracy of your spreadsheets and accounting software. Make a record of all billing statements and invoices you send to clients so you can readily examine the status of their account balance. Small-business entrepreneurs have numerous additional responsibilities in addition to running a firm. Failure to record billing statements and invoices on time and retain an appropriate balance can lead to misunderstandings, a bad customer experience, and eventually damaged cash flow.
Keep track of consumer payments.
Recording a customer payment, like recording customer billing statements and invoices, is equally as vital as updating a client’s outstanding amount. Spreadsheets and accounting software may become your favorite tools for documenting payments, but mistakenly billing a customer twice owing to poor bookkeeping may be unpleasant.
Review of Payroll and Tax Payments.
If you have employees, go over the paycheck summary once a month to avoid mistakes. Ensure that all payroll tax obligations (federal, state, and local) are satisfied. Income tax, social security, Medicare, and disability payments must be examined at least once a month, and correct withholdings must be paid within each payroll period.
Keep track of vendor bills and payment data.
File all vendor invoices and payment data in an easy-to-search, discover, and update format. Have everything in one place, whether you construct an internal file structure on your computer or upload everything to accounting software.
Velan also recommends printing e-bills if you save physical copies of items or scanning paper bills so you may file them so you have everything in one place in the same format. You don’t have to go back and forth between the computer and the file cabinet, trying to remember who sends e-bills and who sends paper invoices.
If you’re more tech-savvy, scan your vendor bills and payment records and save them in your accounting software and/or on your computer.
Examine the inventory and the status.
If you have inventory, you should inspect it and monitor its status at least once a month, if not frequently. Maintaining accurate records will ensure that you retain the appropriate quantity of inventory and minimize waste or delayed turnover. Inventory includes not just the products you sell but also the purchases necessary to supply your services, such as office supplies, condiments, and so on.
Payroll processing and review
This is a chore that you may have to perform more than once a month, but it is critical since you have employees that rely on you for a living. They will continue to expand your company. Go, squad!
Examine the projected cash flow.
You should always be aware of your cash flow and where you stand in relation to your cash flow goals. Remind yourself once a week and make modifications as needed. We recommend that you create weekly, monthly, and yearly cash flow projections. This provides you with a quick and comprehensive insight into your cash flow objectives.
What Is the Purpose of a Monthly Accounting Checklist?
It aids in the detection of errors.
Regardless of the industry in which your company works, it is likely that it conducts a large number of transactions in a given month. The more transactions that occur, the more likely it is that one of them may be recorded improperly or forgotten completely. Unrecorded costs might pose issues for your company when measuring its profitability and when it comes time to submit taxes.
A month-end closure checklist will assist you in rapidly identifying and correcting any differences, remembering items you might otherwise forget, and spotting potentially costly errors.
It assists you in making better selections.
When it comes to running a business, it’s difficult to overestimate the value of precise accounting reports. These reports enable you to assess your company’s financial health, discover difficulties, and make the best decisions for your company’s future. Furthermore, accurate reports provide outside parties such as lenders, investors, and analysts with a comprehensive view of your company’s status and performance.
Implementing a monthly accounting checklist provides higher financial reporting accuracy—and all the benefits that come with it.
It aids in the agility of your business.
The sooner you receive the previous month’s financial reports, the sooner you can study them, identify problems, and make the required modifications to avoid financial loss.
Due to the complexities of the closure process, it is frequently a time-consuming procedure. A monthly accounting checklist may help you boost the efficiency of your closing by offering a logical list of things to execute as well as the order in which they must be completed. Furthermore, you may be able to modify your company’s month-end closure procedure to receive the information you need with fewer delays.
It keeps you prepared for audits.
You can make sure your business is prepared for an audit at the end of every month by creating a well-thought-out month-end closure checklist, spotting and fixing issues early, and increasing turnaround time for reporting. It will also take less time, effort, and money to prepare your year-end financial statements because your monthly reports are accurate and well-organized.
We’ll go a bit more into the month-end closure procedure now that you have a broad understanding of the benefits of employing a monthly accounting checklist.
Accounting and bookkeeping
Accounting and bookkeeping are not the same things. Accounting relies heavily on bookkeeping. Accounting encompasses more than just bookkeeping. Accounting encompasses the design of accounting systems that bookkeepers use to prepare financial statements, audits, cost studies, income-tax returns, and so on.
It also makes accounting information easier to comprehend for internal and external users making company choices. It needs the expertise and experience of an accountant.
There is a distinction between the terms “bookkeeping” and “accounting.” Let us examine what bookkeeping and accounting are, their methods, and the distinction between the two.
We must adhere to basic accounting ideas and accounting rules when performing bookkeeping.
Bookkeeping is a clerical job. Bookkeeping is frequently done by junior employees of the organization. Nowadays, most businesses utilize computers for bookkeeping rather than physically documenting them. An entity’s accounting is dependent on its bookkeeping system.
Accounting is founded on bookkeeping. It is because it is in charge of properly documenting financial transactions. Accounting, on the other hand, comprises the classification, summarization, and reporting of financial transactions. It entails preparing source papers for all of the entity’s financial activities.
- Recognizing financial transactions
- Financial transaction recording
- Accounts ledger preparation
- Trial balance preparation
Accounting entails properly documenting, categorizing, and summarising financial transactions. It is concerned with conventional monetary measurement. As a result, it is a larger idea than accounting. Accounting includes bookkeeping.
Only financial transactions that can be stated in monetary terms are documented. Accounting allows stakeholders to understand an entity’s financial situation for the period. It is focused on summarising the financial transactions that have been documented. It also allows managers to create various sorts of reports.
- Recognizing financial transactions
- Financial transaction recording
- Making ledger entries
- Trial balance preparation
- Financial statement preparation
- Financial statement analysis
Pricing Packages for Bookkeeping
Bookkeeping services assess the time and difficulty of maintaining your books based on a variety of criteria, which is reflected in their price packages. When looking for bookkeeping solutions for your business or starting a new one, there are three major aspects that influence pricing:
- Account Number
What number of bank accounts and credit cards do you have? This covers payment processing accounts such as Stripe and Square.
- Amount of Transactions
In a typical month, how many bank and credit card transactions does your business make?
- Monthly outgoings
What are your monthly costs on average? How much money does your company typically spend on merchandise, services, and payments? Every firm needs bookkeeping to keep track of transactions and protect cash flow. Accurate accounting is essential for tracking business spending and streamlining taxes. Regardless of your budget, you can choose an accounting pricing plan that is right for your business.
Weekly and monthly bookkeeping packages are available.
Your bookkeeping keeps your business operating smoothly by providing you with financial insights that allow you to avoid difficulties and capitalize on opportunities. We provide ordinary bookkeeping as well as vital services such as monthly QBO file maintenance, bank and credit card account reconciliation, receipt bank transaction coding, basic financial reports, sophisticated financial reports as needed, and financial video reviews as needed.
Review of monthly QBO files
Error is human, and it applies to both bookkeeping and the rest of the human experience. As a result, we offer businesses a monthly assessment of their QBO file. When you find and correct errors in your bookkeeping files, they do not compound and produce bigger difficulties later on. Stay ahead of the mistake accumulation problem, and your financial reports will deliver correct information, your forecasts will be accurate, and your firm will function smoothly. This is the first of our monthly bookkeeping and accounting services packages to pay for itself.
Reconciliation of Monthly Accounts
Businesses often retain separate accounts for regular bookkeeping, credit cards, and banking transactions. While you may be keeping errors out of your QBO file, the values in these other accounts may be different. Monthly account reconciliation is essential because it maintains all of your accounting files on the “same page.” This is another of our monthly bookkeeping products that pay for itself by detecting and correcting errors before they proliferate and harm your business.
Our Bookkeeping Experts are here to help.
Our basic pricing for this service is determined by the size of your company and the complexity of your operations.
Coding of Receipt Bank Transactions on a Weekly Basis
If your company isn’t utilizing Receipt Bank, it should be. Paper receipts accumulate over time, taking up storage space and making it difficult to recover outdated information. Receipt Bank software allows you to digitally photograph each receipt and enter the data into your bookkeeping system. This is known as “transaction coding.” Your employee photographs the receipts and uploads the images to Receipt Bank. We are in charge of transaction coding. You may then toss away the receipts, solve your storage problem, and stop worrying about how to discover outdated information stashed in boxes in a closet.
Why should you schedule monthly accounting and bookkeeping via Velan?
Normally, businesses must spend a significant amount of time locating and obtaining quotations from several service providers.
Velan saves you time by evaluating and negotiating rates for all of your business’s monthly bookkeeping and accounting services on one platform with various recognized Service Providers.
Velan also allows you to arrange services with these experts with 100% return protection, the ability to pay in instalments, tracking service delivery, and dedicated assistance, resulting in complete trust and transparency.