Monthly bookkeeping, and why it pays off in April

Bookkeeping is the record of every dollar that comes into and goes out of your business. Done every month, it turns tax season into a short review instead of a search through old statements.

What monthly bookkeeping includes

• Recording and categorizing every transaction
• Reconciling bank and credit card accounts with their statements
• Tracking what customers owe you and what you owe suppliers
• A profit and loss statement and a balance sheet at the end of each month

Why monthly beats once a year

You catch problems while they are small. A missing deposit or a duplicate charge is easy to fix in October and hard to trace in April.

Your tax return is more accurate. Deductions depend on records. Expenses that were never categorized are often never deducted.

You decide with real numbers. Pricing, hiring and loans go better when you know your actual margin.

Three habits that help

1. Keep business and personal money in separate accounts.
2. Save receipts as you go, with a photo or an app.
3. Collect a Form W-9 from every contractor before you pay them.

Are your books behind? We can catch them up first and then keep them current every month.