Your monthly bookkeeping checklist

Download the checklist (PDF)

1. 1

   Reconcile every bank and card account

   Match each transaction in your books to the bank statement until the balances agree. Investigate anything that does not match, however small.

2. 2

   Record and match all sales invoices

   Check every invoice you raised is in the books and that each payment received is matched to the right invoice.

3. 3

   Enter and match supplier bills

   Record bills as they arrive, then match them to payments. Put unpaid bills in your cash flow plan.

4. 4

   Capture every receipt

   Photograph or forward receipts for the month, and attach them to the matching bank line. You need them for the retention period, which is at least 5 years after 31 January for sole traders and 6 years for companies.

5. 5

   Code and review uncategorised items

   Clear anything sitting in suspense or 'uncategorised'. Ask yourself whether each cost is wholly and exclusively for business.

6. 6

   Chase overdue invoices

   Send reminders for anything past its due date. Business customers can be charged statutory late payment interest and fixed compensation.

7. 7

   Check payroll and PAYE

   Confirm payroll journals are posted and the PAYE, National Insurance and pension liabilities agree with what you owe HMRC. Payments are normally due by the 22nd.

8. 8

   Review VAT codes

   If you are VAT registered, scan for transactions with the wrong VAT rate or code before the quarter ends, not after.

9. 9

   Update your mileage and home-working log

   Add the month's business journeys and any home-working hours so nothing is reconstructed from memory at year-end.

10. 10

    Check the director's loan account

    For limited companies, make sure money taken out or put in is coded correctly, and watch the balance so you do not end up overdrawn at year-end.

11. 11

    Run your profit and loss and cash reports

    Compare this month with last month and with the same month last year. Anything that surprises you is worth a closer look.

12. 12

    Back up and note the deadlines

    Make sure your records are backed up, and put the next VAT, PAYE, Self Assessment or Companies House deadline in your diary.