Staying on top of your books doesn’t just save you stress—it saves you money. Whether you’re a freelancer, content creator, or small business owner, a simple monthly bookkeeping routine helps you stay organized, uncover deductions, and avoid last-minute scrambling at tax time.
Here’s a step-by-step monthly bookkeeping process to keep your finances clean, clear, and tax-ready—all year round.
✅ Step 1: Gather All Income Sources
What to do:
- Download statements from your payment platforms (e.g., PayPal, Stripe, Venmo)
- Track income from clients, affiliate links, digital products, or ad revenue
Pro Tip:
Use a Google Sheet or tool like [Taylor’s Toolkit Bookkeeping Template] to log everything in one place.
✅ Step 2: Reconcile Bank & Credit Card Transactions
What to do:
- Compare your bank and credit card transactions to your bookkeeping records
- Look for duplicates, errors, or missed transactions
Pro Tip:
Use automatic import features (like QuickBooks or Wave) to sync and match transactions faster.
✅ Step 3: Categorize All Expenses
What to do:
- Sort expenses into categories like software, supplies, travel, or advertising
- Make sure personal and business expenses are clearly separated
Pro Tip:
Set up auto-categorization rules with your bookkeeping software so common vendors are tagged automatically (e.g., Canva = “Design Tools”).
✅ Step 4: Save & Organize Receipts Digitally
What to do:
- Take photos or screenshots of receipts and upload them to a cloud folder (organized by month or category)
Pro Tip:
Apps like Shoeboxed, Dext, or even Google Drive can automate this step for you. Label your files with the date, vendor, and category for easy reference.
✅ Step 5: Log Mileage or Business Travel
What to do:
- Record your business miles using an app like MileIQ or a simple spreadsheet
- Keep records of tolls, parking, or other travel-related expenses
Pro Tip:
Set a recurring calendar reminder on the last day of the month to update your mileage log.
✅ Step 6: Review Your Profit & Loss
What to do:
- Generate a monthly P&L (Profit & Loss) statement to see income, expenses, and net profit
- Look for trends: Are expenses rising? Any big client payments missing?
Pro Tip:
Use charts or dashboards to visualize your financial health month by month. This makes it easier to adjust your budget or pricing
✅ Step 7: Set Aside Estimated Taxes
What to do:
- Based on your monthly profit, set aside 25–30% for taxes in a separate savings account
Pro Tip:
Use percentage-based rules with tools like Qapital or set up automatic transfers to a “Tax Holding” account.
✅ Step 8: Back Up Your Data
What to do:
- Save your spreadsheet, financial reports, and receipt folder to a cloud drive or external hard drive
Pro Tip:
Set up an automated weekly or monthly cloud backup using Google Drive, Dropbox, or OneDrive.
Final Thought 💡
Doing your bookkeeping once a month (instead of scrambling at year-end) gives you clarity, peace of mind, and leverage at tax time. Just one hour a month can save you hours of chaos later.
Ready to simplify it all?
👉 Grab your free editable Bookkeeping Template from Taylor’s Toolkit—available in Google Sheets, PDF, and Notion.