A simple system can make business finances easier to manage, reduce stress at tax time, and help owners stay ready for review. The IRS says good records help businesses track income, expenses, and financial progress, while Texas sales tax records generally need to be kept for at least four years.

Monthly Bookkeeping Tasks

Use this as a basic monthly rhythm to stay on track.

• ☐ Reconcile bank and credit card accounts.
• ☐ Review income, expenses, and uncategorized transactions.
• ☐ Match receipts to purchases and payments.
• ☐ Check invoices sent, bills received, and open balances.
• ☐ Review payroll and contractor payments.
• ☐ Scan for missing documents or unusual transactions.
• ☐ Save everything in a consistent folder system.
• ☐ Review cash flow and upcoming tax obligations.

Year-End Prep Timeline

• October to November: Review books for missing entries and cleanup items.
• November to December: Gather receipts, invoices, payroll records, and contractor details.
• December 31: Finalize the year's transactions and close the books.
• January: Prepare forms, summaries, and tax-ready reports.
• Early tax season: Review filings and confirm nothing was overlooked.

Document Organization System

A clean file structure makes bookkeeping faster and easier to manage. Suggested folders: Revenue • Expenses • Bank Statements • Credit Cards • Payroll • Contractors • Sales Tax • Assets and Loans • Tax Returns • Year-end Reports.

Key Ratios to Watch

• ☐ Current ratio
• ☐ Gross profit margin
• ☐ Net profit margin
• ☐ Accounts receivable turnover
• ☐ Accounts payable timing

IRS Compliance Reminders

• ☐ Keep business and personal finances separate.
• ☐ Save receipts and proof of payment.
• ☐ Track mileage, travel, and meals where applicable.
• ☐ Issue contractor forms when required.
• ☐ Retain tax records for the proper period.
• ☐ Keep sales tax records for at least four years in Texas.