A Monthly Bookkeeping Rhythm That Takes Two Hours

Behind most stressful year-ends is a year of small deferrals. A fixed rhythm — fifteen minutes weekly, an hour monthly — removes almost all of it, and gives you numbers you can make decisions from rather than numbers you find out about later.

Weekly: fifteen minutes, same slot

1. Photograph and file every receipt from the week; delete nothing until it is attached to a transaction.
2. Raise invoices for completed work. Same-week invoicing is the cheapest cash-flow improvement available.
3. Check for overdue invoices and send one polite chase.
4. Categorise new bank transactions so the feed never builds a backlog.

Monthly: one hour, first week of the month

1. Reconcile every bank and card account to the statement balance. It must match exactly.
2. Review the profit and loss against the previous month and the same month last year.
3. Check the aged receivables list and escalate anything over 30 days.
4. Set aside tax. A separate account with a standing transfer removes the worst surprise in small business.
5. Compare revenue to your break-even figure and note the variance in one line.

Quarterly: the half day that pays

When to hire a bookkeeper

When the weekly slot has been skipped three months running, when you have employees, or when you are spending more than about four hours a month on data entry. A bookkeeper at a few hundred a month usually pays for itself in reclaimed VAT, avoided penalties and hours returned to billable work.

Whoever does it, keep the review yourself. Delegating the data entry is sensible; delegating the understanding of your own numbers is not.