September, 2024
As September rolls in, it's time to focus on preparing your small business for the final quarter of the year. Staying organized and keeping track of your financials will ensure a smooth finish to 2024 and set you up for success in the months ahead. Here’s a September bookkeeping checklist that will help you stay on top of your small business finances:
1. Review Your Year-to-Date Financials
September marks the end of Q3, making it a good time to review your year-to-date (YTD) financials. Take a close look at your profit and loss (P&L) statement, cash flow statement, and balance sheet. Are you on track with your financial goals? Are there any unexpected expenses or revenue streams? Analyzing these documents will give you a clearer picture of your business’s financial health and help you plan for the last quarter of the year.
2. Reconcile Bank and Credit Card Statements
Reconciling your bank and credit card statements is a crucial step to ensure that your financial records match your actual bank account. This will help you catch any errors or discrepancies, whether they’re from your bank or mistakes in data entry. Completing this step every month prevents errors from snowballing into larger issues down the road.
3. Follow Up on Outstanding Invoices
If you have any unpaid invoices, now is the time to follow up. Having outstanding payments can hurt your cash flow, which may affect your ability to cover expenses or invest in new opportunities. Send gentle reminders to clients who are behind on payments, and make sure to track their responses.
4. Update Your Tax Records
With tax season only a few months away, September is a good time to start organizing your tax documents. Keep records of all income, expenses, payroll, and any other transactions relevant to your business. Consider reviewing your estimated tax payments as well, especially if your business has seen significant growth or a change in expenses this year.
5. Review Business Expenses
As part of your monthly bookkeeping routine, review your business expenses for September. Are there any unnecessary subscriptions or services you’re paying for? Can you renegotiate contracts or find more affordable suppliers? Cutting down on wasteful spending will help increase profitability, especially in tighter financial periods.
6. Prepare for End-of-Year Goals
The end of the year is approaching fast! In September, you should start planning for Q4. Review your goals for the year and think about what you can do to hit your targets. Maybe it’s time to ramp up marketing, increase sales efforts, or focus on client retention. Whatever your goals are, reviewing them now ensures you have time to make adjustments.
7. Prepare for Seasonal Changes
For many small businesses, the final months of the year can bring seasonal fluctuations in sales or demand. If your business experiences increased activity during the holiday season, now is the time to prepare. Assess your inventory, staffing, and cash flow needs to ensure you’re ready for a potential surge in business.
8. Check Compliance Deadlines
September is also a good time to double-check any compliance or reporting deadlines. Whether it’s quarterly tax filings, payroll reports, or local business licenses, staying compliant will help you avoid fines and penalties.
9. Invest in Bookkeeping Tools
If your bookkeeping process feels tedious, September is a great time to invest in tools or services to streamline your accounting workflow. Consider using accounting software like QuickBooks, or a cloud-based invoicing platform. These tools can save you time and help you stay organized.
10. Consider Hiring a Professional
If managing your books is overwhelming or taking up too much of your time, it might be time to bring in a professional bookkeeper. Outsourcing your bookkeeping allows you to focus on growing your business while leaving the numbers to the experts.
Final Thoughts
September is the perfect time to assess your small business’s financial health, get organized, and set yourself up for a successful Q4. By following this monthly bookkeeping checklist, you’ll ensure your business stays on track and can meet its financial goals by year-end.
For more tips on managing your business finances or outsourcing your bookkeeping, feel free to contact us here at J. Arrant Consulting, where we help small businesses like yours thrive!
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