Bookkeeping Checklists

Week 1-2: Routine Reconciliation (2-3 hours)

1. Record all transactions: Download marketplace settlements and transaction reports. Categorize each transaction in your accounting software.
2. Reconcile bank account: Match all deposits and payments to your bank statement. Flag any discrepancies for investigation.
3. Review refunds/chargebacks: Log any customer refunds, returned items, or disputed charges to reduce your net revenue.
4. Verify fees charged: Compare fees shown in your accounts to marketplace reports. Look for anything unusual or unexpected.
5. Log expenses: Enter all business expenses (supplies, software, shipping, advertising) into the correct categories.

Week 3: Financial Review (2-3 hours)

1. Run P&L report: Generate your profit & loss statement for the month. Compare to previous months and your budget.
2. Review balance sheet: Verify assets, liabilities, and equity. Ensure everything balances (Assets = Liabilities + Equity).
3. Reconcile all accounts: Verify that every account matches reality. Check inventory counts vs. system, cash balances, etc.
4. Analyze profitability: Which products made profit? Which lost money? Which categories are your best performers?

Week 4: Month-End Closing (1-2 hours)

1. Close the month: Run any necessary adjusting entries (depreciation, accruals, etc.).
2. Save reports: Archive your monthly P&L, Balance Sheet, and reconciliation reports for records.
3. Plan adjustments: Based on profitability analysis, plan pricing or marketing changes for next month.
4. Share with accountant: If working with a professional, provide them with updated records.

Tax & Financial Planning (3-4 hours)

1. Calculate estimated taxes: Use your year-to-date profit to estimate quarterly tax liability. Typically 25-30% of quarterly profit.
2. File quarterly payment: Pay estimated taxes by the quarterly deadline (April 15, June 15, September 15, January 15) to avoid penalties.
3. Review cash flow: Ensure you have enough cash to cover inventory purchases, tax payments, and operating expenses. Plan accordingly.
4. Audit inventory: Count physical inventory and compare to system records. Identify shrinkage or mistakes.
5. Vendor review: Are you getting best pricing from suppliers? Negotiate better rates if possible.
6. Plan next quarter: Based on results, plan marketing, inventory purchases, and business adjustments.

Complete Year-End Financial Closing (6-8 hours)

1. Year-end reconciliation: Reconcile all accounts to make sure everything balances perfectly as of Dec 31.
2. Verify all transactions: Make sure every transaction for the full year has been recorded and categorized.
3. Adjust inventory: Physical inventory count must match system records. Write off any obsolete or unsaleable items.
4. Close all accounts: Transfer net income to retained earnings. Prepare for next year's opening balances.
5. Prepare tax documents: Compile all receipts, invoices, and records. Organize by category for your accountant.
6. Calculate final tax liability: Determine total federal, state, and self-employment taxes owed for the year.
7. File tax return: File Schedule C, Form 1040, and any required state returns by April 15.
8. Plan for next year: Review past year performance. Set goals and strategies for growth.

Required Records to Keep (7+ years)

• All receipts and invoices
• Bank statements and reconciliations
• Marketplace settlement reports
• Tax returns and supporting documents
• Payroll records (if applicable)
• Inventory records and counts
• 1099-K forms received