How Often Should Bookkeeping Be Done?

How often bookkeeping should be done depends on the size and activity level of your business. Monthly bookkeeping may be sufficient for a small business with relatively few transactions, while a growing business may benefit from weekly or fortnightly bookkeeping. The more frequently transactions occur, the more useful regular bookkeeping becomes. Weekly bookkeeping can provide a clearer view of cash flow, outstanding invoices, supplier bills and account balances. 

It can also make errors easier to identify because transactions are reviewed closer to when they occur. Monthly bookkeeping may be appropriate for businesses with lower transaction volumes and straightforward finances. 

The important thing is consistency. Leaving bookkeeping for several months can create a backlog and make it harder to understand the current financial position of the business. Young Guns Bookkeeping helps Melbourne small businesses establish a bookkeeping frequency that matches their transaction volume and requirements. 

We can work with businesses using Xero and other connected systems to keep financial records organised. Xero's cloud-based platform allows business owners and advisers to access the same financial information and collaborate online. 

The right bookkeeping schedule should also take BAS, payroll and reporting deadlines into account. If you have employees, frequent supplier bills or high sales volume, more regular bookkeeping is generally more practical. Rather than asking whether weekly or monthly bookkeeping is universally better, consider how quickly your business needs accurate financial information. 

If you want to know what your business owes, what customers owe you and how cash flow is tracking, regular bookkeeping can provide much better visibility.