Small business accounting checklist: Discover what to do every month to manage cash flow, expenses, and taxes with confidence. Stay compliant and organized—start now

If you run a small business, you have a lot on your plate. You are serving customers, keeping operations moving, and planning for growth. Accounting often gets pushed to the side until tax time. The problem is that delays lead to messy books, missed deductions, poor cash flow, and stress. A simple monthly process can change that. This small business accounting checklist will guide you step by step so you can stay organized, compliant, and profitable all year. Curler Accounting & Tax Services, LLC helps owners in Mequon, Washington County, and communities north of Milwaukee set up simple systems that work. Use this guide to get started and reach out when you want hands on support.

Why Monthly Accounting Matters

Monthly accounting is your early warning system. It shows what is going right and what needs attention before problems grow. When your books are current, you can make decisions with confidence, spot trends, and plan for taxes. Proper monthly routines also make bank financing easier, keep vendors and employees paid on time, and reduce the risk of penalties. Matt Curler, CPA, at Curler Accounting has spent more than two decades helping owners create processes that reduce stress and improve results. The goal is simple. Spend a little time each month so you can save time and money later.

Your Small Business Accounting Checklist for Every Month

Use this small business accounting checklist as your standard process. Set a recurring calendar reminder and block time. Many owners complete these steps in under three hours once the workflow is set.

1. Capture All Income and Sales Data

First, confirm that every sale and deposit is in your accounting system. This protects revenue and gives you an accurate topline.

• Import bank and payment processor transactions for the month.
• Match deposits to invoices or point of sale summaries.
• Record any cash sales with dated receipts.
• Post refunds and discounts with clear notes.
• For project work, update percent complete and billable time.

Tip. If you often miss small deposits or platform payouts, connect your bank and merchant accounts to your software for automatic feeds. Curler Accounting can set this up and build rules that save time.

2. Reconcile Bank and Credit Card Accounts

Reconciliation compares your books to your bank and credit statements. It proves your balances are correct and catches errors or fraud.

• Download statements for all accounts, including savings and merchant clearing.
• Check off every transaction in your accounting system against the statement.
• Investigate differences, duplicates, or missing items.
• Record bank fees and interest earned.
• Confirm the ending balance matches the statement to the penny.

Do this for each active account. If you use multiple cards for staff, reconcile each one.

3. Record and Categorize Expenses

Accurate expense coding is essential for clean financials and deductions at tax time.

• Enter vendor bills and receipts. Use digital copies to stay organized.
• Assign each cost to the correct category such as cost of goods sold, rent, supplies, software, or utilities.
• Split mixed receipts. For example, a supply purchase with a delivery fee should be split between supplies and shipping.
• Record mileage and travel with dates, purpose, and locations.
• Flag personal charges and reimburse the business if needed.

If you are unsure how to categorize, set a standard chart of accounts. Curler Accounting can tailor one to your industry so reporting is meaningful and tax ready.

4. Review Accounts Receivable

Cash flow suffers when customers pay late. A monthly review helps you keep collections on track.

• Run an accounts receivable aging report.
• Send statements and friendly reminders for invoices past due.
• Call top customers who are late and set a clear payment plan.
• Offer payment options like ACH, card, or installment plans for trusted clients.
• Write off uncollectible balances only after proper review and documentation.

Consider deposits or progress billing for long projects to reduce risk.

5. Review Accounts Payable and Plan Cash

Staying current with vendors protects relationships and pricing. It also keeps your credit strong.

• Run an accounts payable aging report.
• Confirm goods or services were received for each bill.
• Schedule payments to align with cash inflows.
• Use early pay discounts where available.
• Prioritize taxes, payroll, and essential vendors if cash is tight.

A 13 week cash flow forecast can help you see crunches before they happen. Curler Accounting builds simple cash models owners can maintain with ease.

6. Run Payroll and Payroll Tax Tasks

On each payroll date, ensure employees and contractors are paid correctly and on time.

• Confirm hours, salaries, and bonuses.
• Verify withholdings and benefits.
• Submit payroll tax deposits by the required dates.
• For contractors, collect W 9s and track payments for 1099s.
• Review payroll reports for accuracy.

If payroll takes too much time or causes headaches, Curler Accounting offers payroll solutions that manage processing, filings, and payments for you.

7. Review Sales Tax Obligations

Sales tax rules vary by state and product. Monthly checks help you avoid penalties.

• Confirm which sales are taxable and which are exempt.
• Verify sales tax collected matches sales reports.
• File and pay sales tax based on your filing frequency.
• Keep exemption certificates on file for qualified customers.

If you sell across state lines, nexus rules may apply. Curler Accounting can review your exposure and help you stay compliant.

8. Update Fixed Assets and Inventory

When you buy equipment or carry inventory, track changes each month.

• Record new equipment purchases and tag them for depreciation.
• Adjust for disposals or trade ins with proper documentation.
• Update inventory counts, cost, and shrinkage based on cycle counts.
• Reconcile inventory value to the balance sheet.

Accurate asset and inventory records support tax deductions and better margins.

9. Review Financial Statements

Look at your profit and loss, balance sheet, and cash flow statement together. This gives a complete picture.

• Profit and loss. Compare revenue, cost of goods, and expenses to last month and to the same month last year.
• Balance sheet. Check cash levels, receivables, payables, debt, and owner equity for reasonableness.
• Cash flow. See how operations, investing, and financing affected cash this month.

Add brief notes on what changed and why. Keep a simple log. This helps you and your CPA spot trends over time.

10. Monitor Key Metrics

Choose a few metrics that drive your business. Review them each month.

• Gross margin percentage.
• Average days to collect receivables.
• Average days to pay vendors.
• Break even sales level.
• Payroll percent of revenue.
• Customer acquisition cost and lifetime value for marketing heavy businesses.

Curler Accounting can help you pick the right metrics for your industry and set up a one page dashboard.

11. Update Your Budget and Forecast

Budgets are roadmaps. Forecasts are course corrections. Each month, compare actuals to your budget and adjust your forecast for the next few months.

• Explain any big differences in sales or expenses.
• Revise the next quarter based on pipeline and trends.
• Plan for big costs like equipment, insurance, or tax payments.

This step helps you plan cash and avoid surprises.

12. Check Compliance and Deadlines

Make a quick compliance pass each month so nothing slips.

• Confirm business registrations and licenses are current.
• Track federal and state tax deadlines for your entity type.
• Review loan covenants and reporting needs.
• Keep insurance certificates and workers comp current.

Curler Accounting offers business tax and compliance guidance for LLCs, S Corps, and other entities so you stay on track.

13. Back Up, Secure, and Document

Protect your records. Good documentation saves time in audits and improves decisions.

• Store digital copies of receipts and invoices.
• Back up your accounting file and key spreadsheets.
• Restrict access to financial data to the right people.
• Document any manual journal entries with notes and support.

Security is part of sound accounting. Review user permissions and two factor settings at least twice a year.

14. Close the Month

Finish with a simple sign off process.

1. Confirm all bank and card accounts are reconciled.
2. Review statements and metrics with your notes.
3. Share a short summary with partners or managers.
4. Lock the period in your software to prevent accidental changes.

This habit keeps your numbers clean and ready for taxes or financing anytime.

Weekly and Daily Habits That Support the Monthly Close

Small daily tasks make the monthly close fast and painless.

• Daily. Send invoices and collect payments. Upload receipts the same day you spend money.
• Twice a week. Categorize new transactions and approve bills for payment.
• Weekly. Review cash on hand and upcoming payments. Follow up on top past due invoices.

Curler Accounting can help you design a simple routine that fits your schedule and software.

Tools and Templates That Make It Easier

The right tools remove friction and reduce errors.

• Cloud accounting software with bank feeds to automate data entry.
• Receipt capture apps that map to your chart of accounts.
• Payment systems for ACH and card to speed collections.
• Payroll platforms that handle filings and deposits.
• Cash flow templates for 13 week planning.
• Dashboard reports that display a few key metrics.

Curler Accounting sets up systems and templates that match your business, then trains your team to use them well.

Common Mistakes to Avoid

Watch for these pitfalls as you use this small business accounting checklist.

• Mixing personal and business spending. Open a dedicated business bank account and use it for everything.
• Letting reconciliations slide. If you skip a month, errors snowball. Keep reconciliations current.
• Over relying on software rules. Rules help, but they still need your review. Check for miscodings.
• Not saving support. Keep digital copies of receipts and contracts so deductions hold up.
• Ignoring small fees. Merchant and software fees add up and affect margins. Track them.
• Waiting for tax season. Plan quarterly so cash is ready for estimated payments.

If any of these sound familiar, Curler Accounting can help you reset and move forward with a clean slate.

When to Bring in Curler Accounting

Outsourcing some or all of your accounting can save time and reduce stress. Curler Accounting & Tax Services, LLC offers a flexible model so you get what you need and nothing you do not.

• Bookkeeping. Monthly categorizing, reconciliations, and financial statements.
• Payroll solutions. Processing, tax deposits, and filings handled for you.
• Tax preparation and planning. Proactive strategies to minimize liabilities.
• Cash flow optimization. Forecasts and working capital strategies to keep cash steady.
• Business tax and compliance. Support for LLCs, S Corps, and multi state issues.
• IRS representation. Help with notices, audits, and payment plans.
• Entity formation. Choose the right tax structure and set it up correctly.

Many owners start with a cleanup and monthly bookkeeping, then add planning or payroll as they grow. Curler Accounting serves clients locally and virtually, so help is available wherever you work in Wisconsin.

About Matt Curler and Curler Accounting

Matt Curler, CPA, leads Curler Accounting & Tax Services, LLC with more than 20 years in tax, finance, and treasury management. He sharpened his skills at KPMG and Harley Davidson, where he focused on tax strategy and compliance. Matt is also a veteran of the Wisconsin Army National Guard, serving 18 years as a Military Police Officer with two deployments to Iraq. He later served six years with the Milwaukee Police Department. That background shows in his work. He brings discipline, integrity, and attention to detail to every client engagement.

Clients choose Curler Accounting for personalized service, small business focus, and practical strategies. The firm is active in the local community through the Rotary Club and volunteer work at the VA Hospital. Whether you prefer in person meetings in Mequon or virtual appointments statewide, you will receive clear guidance and responsive support.

Frequently Asked Questions

How long should the monthly close take?

For most small businesses with a steady volume of transactions, the monthly close should take between two and four hours once your process is set. If you are spending much more time, automation and better workflows can help. Curler Accounting often reduces close time by 30 to 50 percent with bank rules, receipt capture, and a cleaned up chart of accounts.

What if I am behind on my books?

Start with the current month. Reconcile and get this month right, then work backward one month at a time. Focus on bank and card reconciliations first, then key revenue and expense items. For a faster catch up, Curler Accounting offers cleanup projects that bring several months or years current and ready for taxes.

Which reports should I review every month?

Review the profit and loss, balance sheet, and cash flow statement together. Add an accounts receivable aging, accounts payable aging, and a few industry specific metrics. Keep a short monthly notes log to track reasons behind big changes. This keeps future planning and tax prep smooth.

How do I prepare for quarterly estimated taxes?

Use your monthly profit and loss to estimate taxable income, then apply your expected tax rate. Set aside cash each month so quarterly payments are ready on time. Curler Accounting provides tax planning that aligns with your entity type and state rules, so you avoid surprises and penalties.

When should I switch from a spreadsheet to accounting software?

If you have more than a few monthly transactions, multiple accounts, or inventory and payroll, it is time to switch. Software reduces errors, speeds up reconciliations, and creates better reports. Curler Accounting can recommend a platform, set up your chart of accounts, and train your team.

A Simple Plan to Start This Month

Getting control of your books does not have to be hard. Begin with a short checklist and build momentum. Here is a simple plan.

1. Pick a monthly close date. Put a recurring reminder on your calendar.
2. Reconcile your bank and card accounts for the current month.
3. Categorize all income and expenses and save your receipts.
4. Run your three core reports and note what stands out.
5. Choose two actions for next month based on your findings.

If you want a partner, Curler Accounting is ready to help. From setup and cleanup to ongoing bookkeeping, payroll, and tax strategy, you will get practical guidance that fits your budget and goals. Matt Curler, CPA, brings proven experience and a client first approach that makes accounting simple, trustworthy, and useful.

Take the Next Step

Your numbers tell the story of your business. Use this small business accounting checklist each month to keep that story clear and accurate. Strong books support better decisions, easier tax seasons, and healthier cash flow. If you want expert help that respects your time and your budget, contact Curler Accounting & Tax Services, LLC. Whether you are in Mequon, Washington County, or anywhere north of Milwaukee, you can count on professional, approachable, and trustworthy service online or in person. Let us set up your process, reduce your workload, and give you the confidence to focus on what you do best.