To keep your books up to date and running smoothly, you really need to look at your books at least once and month and review what happened the previous month. If you don’t already do this, here is what you need to do:
- Review and/or enter all purchases into QuickBooks and code each transaction to the GL account that reflects why you made the purchase.
- Review and/or enter all sales into QuickBooks and code each transaction to the GL account that reflects why you received the money.
- Reconcile your checking accounts.
- Run a profit and loss statement and balance sheet as of the month you just reconciled to see how your business did. Numbers won’t lie!
- Check on any payments that are entered into QuickBooks, but still have not cleared the bank.
- Run through all of your transactions once more time and make sure everything is coded correctly. (I run the previous 2 months as well to make sure there is consistency).