End-Of-Month Reviews will SAVE you.

Do you find yourself spending way too much time on bookkeeping? That's because there are so many different things that need to be taken care of. There are records to review, accounts to reconcile, invoices and bills to pay, payroll data to enter - the list goes on! The good news is that you can save time by reviewing certain accounting records and accounts at the end of the month. This will not only give you a head start for next month, but it will also allow you more time during quarters and year-end.

I know. I can hear the groans now. But Casey, I already have so much to do. Is there a need for me to do a month-end review? I have already reviewed my account at the quarters and annual point? Why do I need to do it at month end? I get it. I know you're busy. I know we're all busy when it comes to the end of our bookkeeping month. However, I'm going to break it down in a way that just a few simple checks can help you save time when you reach the quarters in your annual reports.

When it comes to month-end, you can do a few basic reviews that can help you make sure your accounts and records are up to date. You're going to want to start with recording incoming cash. That seems very simple to understand. You need to know exactly how much money you've brought in. But not only do you need to realize that, but you also need to know where it's coming from. If you review at the month in, you can quickly see exactly where your money has come from. Next, you want to move on to running the accounts receivable aging report in your accounting software. This report will tell you how much money you still have outstanding and help you plan to collect the money due. Follow this by organizing and reviewing your statements. This can mean bank statements and expense statements. Reviewing these statements helps make sure that everything is correct, as you know it. You will want to do a quick review of petty cash, count your inventory, and look at all the fixed assets to ensure they are correct to date.

Now I've saved the big one for the end. This is the one thing you need to do, even if you do none of what I've said above. You need to reconcile your accounts. Reconciling your accounts helps to ensure that there are no missed entries or mistakes during the month. I mean all your income accounts, investment accounts, and credit card accounts when I say reconcile your accounts. You want to make sure your balance sheet and income statement accounts are correct. Reconciling does this for you.

I recommend completing these review tasks in the following order ( this is a recommendation, not a rule).

• Reconcile Accounts

• Review and Organize  Account Statements

• Review Incoming Cash

• Account Receivable: Ageing reports

• Review Petty Cash

• Take stock of inventory

• Review Fixed Assets

• Review Financial Statements: Balance Sheet, Income Statement, and Cash Flow Statement.

I hope you found this article informative! If not, hopefully, our company can help. I offer various services to make your life easier and more efficient - including bookkeeping assistance for those who just don't have the time or expertise needed to take care of it themselves. I am here to serve as your outsourced accounting department, so let's chat about what we can do for you today! Please help yourself to my free month-end checklist.