Overview
A simple business routine helps you keep your financial records current, get paid on time, and understand how your business is doing. It can also help you catch missing income, unexpected expenses, and bookkeeping issues before they become bigger problems.
You do not need to review everything every day. Start with a few basic tasks each week and month. As your business grows, you can add more detailed reviews and reports.
A consistent routine can help you:
-
Keep transactions and categories organized
-
Follow up on unpaid invoices
-
Capture receipts and mileage while the details are fresh
-
Understand your income, expenses, and profit
-
Keep your records ready for tax time
Weekly
Set aside a few minutes to keep your business activity current.
-
Review recent transactions. Confirm that your business income and expenses are categorized correctly. (See Reviewing Transactions)
-
Send estimates and invoices as needed. Bill clients promptly so you can get paid sooner. (See Creating and Managing Invoices)
-
Record and apply payments. Make sure received payments are connected to the correct invoices. (See Applying & Recording Payments)
-
Check unpaid invoices. Follow up on anything that is overdue or approaching its due date.
-
Capture expense receipts. Add receipts before they are misplaced or forgotten. (Managing Expense Receipts)
-
Track business mileage. Record business trips while you still remember where you went and why. (SeeMileage Tracker)
Monthly
Take a broader look at your business finances.
-
Review your account balances and upcoming payments. Make sure you have enough money available for bills and other business needs.
-
Run a Profit & Loss report. See how much your business earned, what it spent, and whether it generated a profit or loss. (See Profit & Loss Report )
-
Review your Balance Sheet. Get a snapshot of what your business owns, owes, and is worth. (SeeBalance Sheet Report )
-
Look for anything unexpected. Check for unusual expenses, missing income, duplicate transactions, or changes that need your attention.
You do not need to analyze every number. Start by looking at your total income, major expenses, and profit or loss.
Quarterly and Periodically
Complete these tasks when they apply to your business.
-
Pay estimated taxes based on the schedule recommended by your tax professional.
-
Review mileage records and fill in any missing business trips or details.
-
Review deductible expenses and make sure they are categorized and supported by receipts.
-
Update clients, products and services, or projects as your business changes.
-
Review your business information and accounts to make sure everything is still accurate and current.
See the Routine in Action
Following Up on Unpaid Work
A freelance designer reviews unpaid invoices every Friday. She notices that a client’s payment is past due and sends a reminder. The client pays the following week, helping her avoid a cash shortage before an upcoming software bill.
Spotting an Increase in Expenses
A small retail business owner runs a Profit & Loss report at the end of the month. He sees that shipping costs were much higher than usual. After reviewing the transactions, he realizes that several rush orders caused the increase. He decides to adjust his ordering schedule for the next month.
Capturing a Deduction
A consultant records her business mileage and receipts each week. When she reviews her records at the end of the quarter, her trips and expenses are already documented instead of having to be reconstructed from memory.
Congratulations! You’ve Completed All 5 Steps
You’ve added your business and connected its accounts, learned how to review business transactions, recorded income using a method that fits your business, run a business report, and established a routine for keeping your finances current.
You don’t need to do everything at once. Use this routine as a starting point, and adjust it as your business changes.