Month-end in 30 minutes: a simple checklist for small businesses

Month-end sounds like a job for an accountant. In practice, a short routine each month saves you a stressful catch-up at tax time and gives you numbers you can actually use to run your business.

Here is a simple six-step routine that takes about 30 minutes once your accounting software is set up with bank feeds. Block out half an hour in the first week of each month and work through it in order.

01Reconcile your bank and cards (10 minutes)

Match every transaction in your bank and credit card accounts to a sale, bill or expense in your software. Anything you do not recognise, sort out now while you still remember what it was.

02Check who owes you (5 minutes)

Run your aged receivables report. Anything more than 30 days overdue deserves a short, polite reminder today. Unpaid invoices are the most common cause of cash flow stress in small businesses.

03Check what you owe (5 minutes)

Look at the bills due this month. Enter any missing receipts, make sure nothing has been paid twice and plan payments around your cash.

04Payroll and super (3 minutes)

If you have staff, confirm every pay run is recorded and that tax withheld and superannuation are being paid by their due dates. Late super is one of the costliest mistakes a small business can make.

05Set GST aside (2 minutes)

If you are registered for GST, move the GST you collected this month into a separate account. Your BAS then becomes a transfer rather than a surprise.

06Look at three numbers (5 minutes)

• Profit for the month: did you make money?
• Cash in the bank: how many weeks of costs could you cover?
• Money owed to you: is it growing faster than your sales?

Compare each with last month. You do not need a complex dashboard. These three numbers, checked every month, will tell you most of what you need to know.

This article is general information only and is not financial or tax advice. For advice about your own situation, BAS or tax lodgements, speak with your registered tax or BAS agent.