All Posts
No items found.

A Must-Do Checklist for Year-Round Bookkeeping Compliance 

If you want your business to remain financially healthy, follow this monthly, quarterly, and yearly checklist for year-round bookkeeping compliance. 

September 18, 2024

Maintaining compliance is a must-do as a growing business, but it’s not always prioritized as it should be. As you scale, financial management becomes more complex, so you’ll want to be proactive to ensure you aren’t just ticking boxes. Instead, you want to ensure your business remains financially healthy and ready to seize opportunities and hit the next growth milestones. 

Keep reading to discover the must-do checklist for year-round bookkeeping compliance and actionable steps you can take monthly, quarterly, and yearly to optimize your financial management practices and keep your business on track. 

Monthly Tasks to Lay the Foundation

You should view monthly bookkeeping tasks as regular health check-ins for your business. Ignoring these tasks is akin to ignoring an odd noise in your car, which might eventually become a massive problem if left untreated. 

Every month, you’ll want to scrutinize your income statements, balance sheets, cash flow statements, and gain insights into the health of your organization. 

Every month, you’ll want to: 

  1. Reconcile bank and credit card statements
  2. Review financial statements
  3. Maintain accurate records

This isn’t always as simple as it looks, especially as your company scales. Financial processes become more complex, and sometimes, it’s unclear how to categorize and record different items, what type of organizational structure is best for taxes, and how to optimize your business operations. 

But these monthly tasks are your first line of defense against errors and fraud and the best way to ensure you have accurate information on which to base decisions for the future of your business. 

Let’s break down each of these monthly tasks into actionable steps. 

Reconcile Bank and Credit Card Statements

Every month, take the time to reconcile your bank and credit card statements to ensure all transactions are recorded accurately and to catch any discrepancies early. By doing so, you can maintain the integrity of your financial records and ensure that your cash flow statements reflect reality. 

Action Steps: 

  • Gather all of your bank and credit card statements for the month. 
  • Compare each transaction with your internal records. 
  • Investigate and resolve any discrepancies immediately. 

Review Financial Statements

Monthly reviews of your income statement, balance sheet, and cash flow statements provide a snapshot of your business’s financial health. You’ll be able to spot trends, identify potential problems, and make adjustments quickly. 

Action Steps: 

  • Schedule monthly review meetings. 
  • Analyze key metrics like revenue, expenses, and net profit. 
  • Discuss findings with your financial team and course-correct as needed. 

Maintain Accurate Records

Accurate record-keeping involves meticulously documenting every financial transaction to help make data-driven decisions for the business, support your initiatives, and prepare for tax season and any potential audits. 

Action Steps: 

  • Implement a digital filing system, ideally an automated one, for easy access and organization. 
  • Develop a work culture of detailed record-keeping. 
  • Regularly audit records for accuracy and completeness. 

Quarterly Tasks to Determine How You’re Doing

Some tasks are better left on the monthly task list because waiting until your quarterly review to diagnose a problem could be too late. These quarterly tasks help steer your business in the right direction. You’ll be able to manage cash flow more effectively, make adjustments, and ensure your company remains financially sound and compliant. 

Every quarter, you’ll want to: 

  1. Review and adjust budgets based on performance, business goals, and market conditions. 
  2. Look at KPIs to determine if you’re on track with business objectives. 
  3. Estimate and pay quarterly taxes as necessary to avoid penalties. 

Depending on what kind of business you have, you might do inventory audits, or if you’re a SaaS company, you might want to conduct a customer churn analysis to help identify patterns and find ways to improve customer retention. 

To make these quarterly tasks easier, set a recurring review schedule that everyone who needs to know will know about and block off time for. Involve your financial team, use automation tools to streamline whatever you can, and hire a fractional CFO to help make this process even more fruitful. 

Now, let’s look at each task you should do during quarterly reviews. 

Review and Adjust Budgets

Quarterly budget reviews allow you to compare your financial performance against your projections. You’ll be able to understand where you’re on track and where you might need to make adjustments. Budgeting isn’t a one-and-done kind of task. It’s an iterative process that evolves as your business does. 

Action Steps: 

  • Analyze budget variances and dig into discrepancies. 
  • Adjust budget allocations based on performance and priorities. 
  • Communicate changes to the right people. 

Track and Adjust KPIs

You want to regularly review key performance indicators because they provide valuable insights into your company’s performance. You’ll easily be able to identify your strengths, weaknesses, and opportunities for growth. KPIs ensure you’re aligned with strategic business goals. 

Action Steps: 

  • You should already have identified the most critical KPIs for your business, so at your quarterly review, you’ll want to collect accurate data to analyze trends and establish benchmarks to measure for the next quarter and year. 
  • Develop strategies to improve underperforming areas and double down on what’s working. 
  • Share these insights and action plans with the team to ensure everyone is aligned and working towards the same goals. 

Estimate and Pay Taxes

You can avoid penalties and ensure compliance with tax regulations by making quarterly tax payments. It’s a proactive approach to managing your cash flow better. A strategic financial partner like a fractional CFO can help reduce tax liability while ensuring compliance. 

Action Steps: 

  • Calculate estimated taxes based on your current financial data. This is why accurate reporting is critical. 
  • Set aside funds for those tax payments. 
  • Submit payments to the IRS and any relevant entities on time to avoid late fees and penalties. 

Annual Tasks: A Year in Review and Looking Ahead

It’s time to tie up loose ends and set the stage for the following year. Future planning and forecasting for the next year typically land around the end of the fiscal year, usually in the third or fourth quarter. You want time to gather and analyze this year’s data, assess market conditions, and align your goals and projections for the upcoming year. 

Some annual bookkeeping tasks you’ll want to prioritize are: 

  • Preparing financial statements. 
  • Conducting a year-end review. 
  • Organizing tax documents. 

You can avoid last-minute scrambling by staying on top of your monthly and quarterly bookkeeping checklists throughout the year and keeping accurate and easily accessible data to help drive future decisions and goals. 

Let’s look at each of the annual accounting tasks in greater detail. 

Prepare Financial Statements

It’s the end of the fiscal year, so you want to compile reviewed financial statements to provide valuable insights into your business’s overall performance. 

Action Steps: 

  • Gather all financial data and documentation. If done right, this will all be automated, digitally organized, and easy to access, and it will be precisely what you need when you need it. 
  • Work with your accountant or fractional CFO to ensure compliance and accuracy. 
  • Review statements to glean insights into your financial health and profitability. 

Conduct a Year-End Review

This is an opportunity to reflect on the past year and plan for the future. You can bring the whole team into this conversation to celebrate your wins, set goals for the next year, and level-set everything that’s happened up to this point. 

During a year-end review, you should compare actual results against budgets and forecasts to identify areas of improvement and set new goals for the following year. 

Action Steps: 

  • Analyze performance and key metrics. 
  • Identify successes and areas for growth. 
  • Develop a strategic plan for the coming year. 

Organize Tax Documents

If you’ve hired a fractional CFO, this will all be handled for you. Tax season can be stressful, but preparation makes everything a more pleasant experience. Organize all necessary documents to ensure everything is accurate for tax filings.

Action Steps: 

  • Collect all relevant tax documents and records. 
  • Verify the accuracy of contractor information and forms, as needed. 
  • Work with your bookkeeping and tax professional to prepare and file taxes. 

Year-Round Bookkeeping Checklist for Compliance

A year-round bookkeeping checklist can help keep your business on track no matter the season. As your organization becomes more complex, you might want to consider hiring a fractional CFO with bookkeeping experience to help manage the financials. 

A fractional CFO will keep you ahead of the curve on tax regulations, maximizing your benefits and minimizing liabilities, all while staying compliant. 

This comprehensive checklist includes monthly, quarterly, and annual bookkeeping tasks to keep your business in tip-top shape. You’ll also want to implement ongoing bookkeeping tasks that include: 

  1. Leveraging Cloud-based accounting software to automate the bookkeeping process. This improves accuracy and provides real-time financial insights for faster decision-making. 
  2. Staying informed on tax laws, which are constantly evolving. Your fractional CFO can do this for you, so you don’t have to worry about missing out on anything important that could impact the future of your business. 
  3. Scheduling regular check-ins with your financial management partner. This gives you frequent opportunities to catch minor issues before they become big problems and to analyze financial insights that could lead to better performance. 

Effective bookkeeping isn’t just about compliance. It’s about empowering your business to thrive in a competitive marketplace. Take these steps seriously, and you’ll build a strong foundation for a financially healthy company and long-term success. 

The Top 5 NetSuite Cloud Features to Future-Proof Your Business 

Tackle the biggest pain points for scaling your business with these top 5 scalable NetSuite Cloud features. 

7 NetSuite Issues and How to Fix Them Quickly

NetSuite is a powerful tool, but like any software, it has its own challenges. Learn how to solve the seven most common NetSuite issues. 

What is Netsuite and Why Do So Many Startups Choose It

What is NetSuite, and why do so many startups love it? There are many reasons, so keep reading to learn how NetSuite can solve your biggest pain points. 

5 Benefits of Using Netsuite for Financial Reporting and Analysis

You can transform your business trajectory using NetSuite for financial reporting and analysis. Keep reading to learn about the 5 benefits of using this ERP system. 

Is Netsuite Right For Your Growing Company

Every company is unique and requires different processes and workflows to reach the next stage of growth. Keep reading to learn if NetSuite is right for your growing business. 

Basic Bookkeeping vs. Advanced Financial Management: Which One Do You Need?

Does your business need basic bookkeeping or advanced financial management? Keep reading to find out. 

7 Ways a Fractional CFO Minimizes Tax Risk

Constantly changing tax laws and regulations can overwhelm a growing company. Learn these seven ways a fractional CFO minimizes tax risk.

6 Ways a Fractional CFO Can Secure Funding For Your Business

Securing funding for your business isn’t a walk in the park. It requires strategy, financial expertise, and accurate financial data to tell a compelling financial narrative. Here’s how a fractional CFO can help. 

5 Tips for a Successful NetSuite Implementation

Successful NetSuite implementation is about people, processes, and technology. Follow these five tips to drive your business forward. 

How Much Does A Fractional CFO Cost? 

How much does a fractional CFO cost? Let’s answer many founders’ most pressing questions about making this critical hire. 

How to Cut Costs, Not Corners with an Outsourced CFO

How can you cut costs for your startup without hiring a full-time CFO? A fractional CFO is the answer and here’s why. 

4 NetSuite Hacks To Optimize Your Supply Chain

To gain a competitive advantage in today’s fast-paced world, you have to stay on top of supply chain challenges. Utilize these 4 NetSuite hacks to optimize your supply chain and boost your bottom line. 

7 Common Bookkeeping Mistakes That Hurt Profitability From A Fractional CFO

Are you making these seven common bookkeeping mistakes that are hurting your profitability? Follow the tips in this blog post to protect your bottom line. 

6 Budgeting Tips for Business Success from a Fractional CFO

Read these 6 budget tips to help you define a clear financial roadmap for every decision you make as a company, and to drive a culture of financial accountability. 

Top 7 Reasons Mid-Market Leaders Choose NetSuite’s Cloud ERP

If you’re managing complex financial situations on outdated systems, it’s time to upgrade to this customized-to-fit-all solution of NetSuite’s Cloud ERP. 

When Is The Right Time To Hire A Fractional CFO

When is the right time to hire a fractional CFO? When you meet at least one of these five criteria.

The 7 Best Tax Strategies for Scaling Businesses from a Fractional CFO

As a business, you want your money working for you as efficiently as possible. Follow these 7 best tax strategies to reduce tax liability and grow your business. 

5 Financial Metrics Every CEO Should Track

If you do a Google search on important financial metrics for your business, you’ll come up with dozens of “must-have” metrics. But you only need 3-5 to succeed!

10 Ways NetSuite Helps Optimize Cash Flow and Minimize Burn Rate

Are you a founder or CEO struggling with cash flow problems and an out-of-control burn rate? Read the top 10 ways NetSuite can help solve all your biggest financial problems within a single solution.

EBITDA vs. Free Cash Flow: Which Metric Matters More?

EBITDA vs. free cash flow are two financial metrics that often find themselves head-to-head for companies between $2 million and $10 million in revenue. Which is better?

3 Signs Your Business Is In Desperate Need of a Fractional CFO

Do you have leaky cash flow problems, inaccurate forecasting, and a general lack of time or money to manage your organization’s financials? It may be time to hire a fractional CFO to save your business.

Solid financial reporting can help attract debt and equity financing

Financial reporting plays a key role when a business needs funds for continued operations and strategic investment opportunities.

Did your business buy the wrong software?

No one likes to make a mistake. This is especially true in business, where a wrong decision can cost money, time and resources. According to the results of a recent survey, one of the primary ways that many companies are committing costly foibles is buying the wrong software.

Best practices for M&A due diligence

Participating in mergers and acquisitions (M&A) offers growth opportunities for businesses, but also comes with its share of risks. It's crucial for buyers to have a thorough understanding of the strengths and weaknesses of potential partners or acquisition targets before proceeding with any deals.

Perform an operational review to see how well your business is running

In the wide, wide world of mergers and acquisitions (M&A), most business buyers conduct thorough due diligence before closing their deals. This usually involves carefully investigating the target company’s financial, legal and operational positions.

Tax-favored Qualified Small Business Corporation status could help you thrive

Opting to run your small enterprise as a Qualified Small Business Corporation (QSBC) might be a smart tax strategy.

Navigating Year-End Finances: A Real Estate Broker’s Guide to Cost-Effective CPA Solutions

As a real estate broker, you're accustomed to navigating complex deals and managing a multitude of tasks. However, when it comes to managing year-end finances, even the most seasoned brokers can find themselves in murky waters

Unleashing the Power of NetSuite: Why Your Business Needs an Expert CPA Firm

In the realm of business management, NetSuite stands out as a powerful tool designed to streamline operations and enhance financial visibility.

Financial Mastery Without Full-Time Costs: The Strategic Edge of Fractional CFOs for Tech Leaders

In the ever-evolving landscape of the tech industry, where innovation is the currency of success, financial management plays a pivotal role in shaping the trajectory of your tech firm.

New Year, New Numbers: Top 10 Accounting Priorities for a Smoother Tax Season

As the calendar flips to a new year, business owners find themselves at the threshold of a crucial period—tax season

Countdown to Tax Time: Affordable CPA Strategies for E-Commerce Success

As an e-commerce business owner using the powerful NetSuite platform, the countdown to tax time can bring both anticipation and anxiety.

Key 2024 inflation-adjusted tax parameters for small businesses and their owners

The IRS recently announced various inflation-adjusted federal income tax amounts. Here’s a rundown of the amounts that are most likely to affect small businesses and their owners.

Best practices for effective board meeting minutes

If you think the recorded minutes of your nonprofit’s board meetings are just a formality, think again

Businesses: Know who your privileged users are … and aren’t

Given the pervasiveness of technology in the business world today, most companies are sitting on treasure troves of sensitive data that could be abducted, exploited, corrupted or destroyed

Accounting for M&As

Business merger and acquisition (M&A) transactions have significant financial reporting implications. Notably, the company’s balance sheet will look markedly different than it did before the business combination.

Using QuickBooks to prepare 2024 budgets and forecasts

As year end nears, many businesses and nonprofits are planning for 2024. QuickBooks® provides budget and forecast features to help management make financial predictions, as well as assess “what if” scenarios to help make more-informed business decisions.

Tips for QuickBooks users: 5 mistakes to avoid during bank reconciliation

Reconciling bank accounts is critical to ensuring the accuracy of your company’s accounting records. The primary purpose of a bank reconciliation is to confirm that the transactions recorded in your bank statement match those shown in your accounting records.

Shareholder advances: Debt or equity?

From time to time, owners of closely held businesses might need to advance their companies money to bridge a temporary downturn or provide funds for an expansion or another major purchase

Revitalize Sales Strategies for the Digital Marketplace

E-commerce business owners, as the year draws to a close, you and your leadership team are likely fine-tuning your vision for 2024.

Maximizing Cash Flow in Real Estate: The Power of Cost Segregation Studies

Is your real estate business fully capitalizing on the depreciation of your property investments?

Some businesses may have an easier path to financial statements

There’s no getting around the fact that accurate financial statements are imperative for every business. Publicly held companies are required to not only issue them, but also have them audited by an independent CPA

Key Performance Indicators (KPIs) for SaaS Businesses: A Comprehensive Guide

Software as a Service (SaaS) has revolutionized the software industry. The transition from traditional software licensing models to subscription-based, cloud-hosted services offers businesses scalability, flexibility, and significant cost benefits

3 types of internal benchmarking (KPI) reports for businesses

As each year winds to a close, owners of established businesses can count on having plenty of at least one thing: information.

Are you ready for year-end inventory counts?

As year end approaches, it’s time for some calendar-year businesses to perform physical inventory counts. This activity is more than a time-consuming chore; it’s an opportunity to improve your company’s operational efficiency.