Many Micro, Small, and Medium Enterprises (MSMEs) prioritise daily business; financial management is secondary to it. Yet, the lack of organised financial reporting can plague any prospective business with non-compliance, financial liquidity difficulties, and other growth opportunities. That is why monthly bookkeeping service are as valuable as ever.

Bookkeeping is not merely keeping up with records; it is getting into financial clarity, facilitating better decisions, and making the business successful in the long run. By having the appropriate monthly procedures, MSMEs will be able to remain compliant, plan smart, and grow much quickly.

Why Monthly Bookkeeping Service Is Crucial for MSMEs?

Bookkeeping every month assists MSMEs in keeping track of their revenues and expenses and staying financially in check. It makes sure that your books give a true reflection of what happens to your business, and that is what is needed when getting a loan, paying taxes or getting investors. Bookkeeping also offers you a level of detail of your cash flow in real-time, so you can procure both your daily operational requirements and long-term expansion.

Legal and tax compliance is also essential to record the correct information in startups and small firms. Failure to return GST, underreporting income or wrong recording of costs can attract a penalty for MSMEs, which no MSME wishes to pay. That is why the outsourcing of bookkeeping to professionals such as the Starters’ CFO is a game-changer.

The Monthly Bookkeeping Service Checklist: What MSMEs Should Cover

Engineering month bookkeeping is a guide that is followed to make sure that critical tasks are not overlooked. The list below is a checklist to guide all MSMEs in order to maintain their books clean and up to date.

• Assemble and Coordinate Financial Papers

A source document exists in each transaction. Sales invoices, supplier bills, utility bills, and bank statements should be gathered and stored at the beginning of each month, regardless of whether they are financial documents or not. This set of records will be the basis of proper entries and subsequent audits in the future. Digital services allow securing and tracking these documents safely and conveniently on cloud services at Starters’ CFO.

• Document every financial deal of the business

As soon as the documents are ready, it is necessary to keep all the financial transaction records properly, including the revenue from sales, the payments to the vendors, the loan payments, and the operating expenses. Most of the MSMEs succumb to recording entries very late or irregularly. Frequent bookkeeping should be carried out every month, and all activities should be listed and recorded in an orderly manner through accounting systems such as Tally, Zoho or QuickBooks. This step is facilitated by the Starters’ CFO and is ascertained to be correct.

• Balance Bank and Cash Statements

Bank reconciliation is an important measure that you should use to determine whether the things you have recorded as transactions in your records reflect your on-ground activity. This is done to identify any form of discrepancy, such as the occurrence of additional payments that should not have occurred, unauthorised transactions or omissions. It also covers the process of reconciling credit card statements and cash books. In its regular bookkeeping services, Starters’ CFO also assists MSMEs in doing monthly reconciliations, which is one of the core bookkeeping tasks.

• Payables and Receivables

To ensure a healthy cash flow, it is essential to track money inflow and outflow. Companies are required to update payable invoices, chase after late remuneration, as well as vendor disbursement plans, to avoid fines or bad terms. Constant payments on the receivables and payables will ensure the MSMEs do not end up in bottlenecks and better predict their cash flow. 

• Business Expenses Classification

Every rupee should be traced to a necessary expense head; be it rent, utility cost, software subscriptions, travel costs or marketing. This classification assists business owners in identifying how they are spending and containing unwarranted expenses. The Starters’ CFO provides MSMEs with specialised financial analysis to make sure that they study with the group, look at their expenses, and adjust as much as possible to get higher deductions and better budgeting.

• Create Your Monthly Financial Statements

The monthly financial statements provide an overview of the company at a given point in time concerning the company’s financials. A Profit and Loss (P&L) Statement brings out revenues and expenditures, a Balance Sheet indicates how the company holds assets and liabilities, and a Cash Flow Statement brings out the actual flow in and out. These reports are important in decision-making, presentation to investors, and even when borrowing loans. Other than being able to get in-depth, customised financial statements every month, reviewed and explained by experts, Starters’ CFO delivers to MSMEs further protocols to help them maintain their financial health.

• Keep GST TDS in compliance

Most companies have to file GST and TDS on time in India. Those deductions are checked every month, and tax returns should be done as well, such as GSTR-1, GSTR-3B, and TDS statements. This is simplified by the Starters’ CFO, who incorporates GST compliance and TDS compliance into the bookkeeping cycle, which ensures that MSMEs can keep on top of things and not fall foul of the regulations.

• Enter our Inventory (Update Inventory Records

As far as MSMEs dealing with physical products are concerned, they must maintain correct inventory records. The movement of stock ought to be noted every month to facilitate purchases and sales so that losses as a result of theft, spoilage or overstocking would not be incurred. Starters’ CFO makes it possible to monitor in real-time the inventory using business or financial information and filter reports.

• Check Payroll and Statutory expenses

The payroll bookkeeping involves monitoring the salary paid, bonus, reimbursement, and statutory deductions such as EPF, ESI and professional tax. The aspect of payroll processing is a critical issue that will mislead, cause dissatisfaction and result in legal problems for employees. The Starters’ CFO controls the payroll processing, and this is done with the appropriate accuracy by statutory requirements every month.

• Determine Monthly Financials

The last phase during the monthly cycle is the performance assessment. When the MSMEs compare financial reports to the past months or the planned objectives of the budget, they will have the capacity to reveal trends, expose mistakes and prepare beforehand. It is not only the retrospective assessment of this month, but also the planning of the following month. Starters’ CFO assists a business to make use of such insights to formulate a strategy and act upon them as part of its virtual CFO services.

Benefits of Outsourcing Bookkeeping Service for MSMEs

It might appear economical to have bookkeeping as an in-house problem, but the danger of inaccuracy, non-conformance and duplication of procedures usually overshadows the cost saving. When outsourcing the services of professionals such as the Starters’ CFO, it will ensure:

• Precision in bookkeeping
• Sweating resources and time
• Proper time GST/TDS payment
• Recommended reports with insightful information to aid in decision-making

Scalable solutions for your business

Through the assistance of an expert, MSMEs will no longer be afraid of deadlines, reconciliation and intricate taxation.

Why select Starters’ CFO to provide bookkeeping Service?

Starters’ CFO is not a mere bookkeeping service; it is a full financial partner of the MSMEs and the startups. Their services range from all types of bookkeeping, reconciliation, detailed financial reporting, and strategic planning at a reasonable cost and a high level of flexibility.

Conclusion

The financial success of MSMEs is in the monthly bookkeeping. It not only keeps records, but also develops discipline and allows compliance, and leads to growth. By using an organised monthly checklist and professional help from the Starters’ CFO, any small or medium company can change the mess of financial problems they experience into a well-organised environment.

It does not matter whether you are just entering the market or you need to enhance your existing operations; you need to start taking bookkeeping seriously. Your books will be managed by Starters’ CFO, and you can concentrate on making your business grow instead.