Why a monthly routine matters
Bookkeeping done once a year is damage control. Bookkeeping done once a month is a financial system. The difference is clarity — and the ability to make good decisions before problems become crises.
Here is a straightforward checklist you can follow every month to keep your books in good shape.
Week 1 — Record and reconcile
- Record all transactions from the previous month (sales, purchases, expenses)
- Match every transaction to your bank statement — this is bank reconciliation
- Upload and categorise any receipts you have collected
- Chase any outstanding invoices that are overdue
Week 2 — Review your numbers
- Review your profit and loss — what came in, what went out
- Check your cashflow position — what is available right now vs what is owed
- Flag any expenses that look unusual or unexpectedly high
- Confirm all sales have been invoiced and recorded correctly
End of month — Prepare ahead
- Confirm your VAT records are up to date if you are VAT-registered
- Note any upcoming large outgoings (quarterly bills, insurance, subscriptions)
- File all receipts and documents in a clear, organised system
- Make a note of anything to discuss with your bookkeeper or accountant
How long should this take?
For most small businesses with a manageable volume of transactions, a proper monthly bookkeeping routine should take between one and three hours. If it is taking longer, your systems need tidying. If it is taking less than thirty minutes and you are skipping steps, your records are probably not as complete as you think.
What if you fall behind?
Do not let one missed month become six. The further behind you fall, the harder and more expensive it is to catch up. If life gets in the way, get back on track as quickly as possible — even if that means bringing in a bookkeeper to help you clear the backlog.
A monthly routine does not have to be complicated. It just has to be consistent. Start this month, and you will be in a completely different position by the time your year end arrives.
