March is an important month for small business owners to stay on top of their bookkeeping. With tax season just around the corner, it’s essential to ensure all financial records are accurate and up-to-date. In this blog, we’ll explore some tips and best practices for small business bookkeeping in March.

Review and Reconcile Bank Statements

One of the most important tasks for March bookkeeping is to review and reconcile bank statements. This involves comparing your business’s financial records with your bank’s records to ensure everything matches up. If you notice any discrepancies or errors, it’s essential to investigate and correct them immediately. This is also a good time to review your cash flow and identify any areas where you can improve.

Review and Update Expenses

March is a good time to review your expenses for the year so far and identify any areas where you can reduce costs. This may involve renegotiating contracts with vendors or finding more cost-effective solutions for your business needs. It’s also essential to ensure that all expenses are accurately recorded in your accounting software and that you have receipts or other documentation to support them.

You can manage receipts physically or electronically. Many programs like the popular QuickBooks Online allow you to snap a photo of the receipt and match it to an expense already recorded. That cuts down on the probability that you could lose a physical receipt and makes it easier for a bookkeeper like me to accurately prepare your financials for your Accountant.

March Bookkeeping Prepares for Tax Season

As tax season approaches, it’s important to ensure that all financial records are accurate and up-to-date. This includes reviewing your profit and loss statements, balance sheets, and other financial reports. You should also make sure that all tax forms, such as W-2s and 1099s, are complete and filed with the appropriate agencies. If you have any questions or concerns about tax season, it’s always a good idea to consult with a qualified tax professional.

Check Your Inventory

If your business involves selling products, it’s essential to check your inventory in March. This may not sound like a “bookkeeping task,” but it will help you identify any slow-moving or obsolete items in need of a discount or liquidation. Inventory is money. Money is bookkeeping. 

Staying on top of your inventory also prevents missed sales. When your inventory report is not up to date, it’s easy to run out of products—and miss out on sales. Instead of relying on your memory or a visit to the warehouse to decide what to reorder, use this report to reorder before you run out.

It’s also a good time to make sure that your inventory records are accurate and up-to-date in your accounting software.

Plan for the Future with Bookkeeping This March

Finally, March is an excellent time to plan for the future of your business. This may involve setting financial goals for the year ahead, developing a budget, or identifying new opportunities for growth. By taking the time to plan ahead, you can help ensure the long-term success of your business.

March is a critical month for small business bookkeeping. By reviewing and reconciling bank statements, updating expenses, preparing for tax season, checking inventory, and planning for the future, you can ensure that your business’s finances are accurate and up-to-date.

Need Help With Bookkeeping Tasks?

If you’d like more information about what’s important about book, feel free to browse through my library of helpful articles. One of my most popular is “What’s Important About the End of First Quarter?”

If you need assistance with bookkeeping or other financial tasks, consider consulting with a qualified accounting professional. If you’d like to chat with me, I offer complimentary 30-minute consultations.