Bookkeeping Readiness

Foundational financial controls and reporting cadence for businesses building the discipline for strategic advisory engagement. Assess your current bookkeeping foundation and identify your next steps.

Why This Matters

Clean Books Are the Foundation of Everything

Accurate, consistent bookkeeping is the prerequisite for every strategic financial decision — from tax planning to growth financing to business exit. Without reliable financial records, even the best advisory strategy is built on uncertain ground.

Use this readiness framework to assess where your bookkeeping stands today and identify the foundational improvements that will unlock the most value from CPA-led advisory services.

📋 Monthly Close Checklist

A disciplined monthly close process ensures your financial data is accurate and decision-ready at all times. Review each item against your current practice.

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Bank & Credit Reconciliation All bank and credit card accounts reconciled against statements. Every transaction categorized accurately and discrepancies resolved.

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Revenue Recognition Review Confirm all revenue is recorded in the correct period. Deferred revenue and deposits properly classified and tracked.

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Accounts Receivable Aging Outstanding invoices reviewed, aged, and followed up. Any uncollectible balances flagged for write-off consideration.

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Accounts Payable Review All vendor bills entered and approved. Upcoming payment obligations tracked against available cash.

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Payroll Reconciliation Payroll entries reconciled against payroll reports. Payroll tax liabilities accurately recorded and paid on time.

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Financial Statement Review P&L, balance sheet, and cash flow statement generated and reviewed for anomalies before month-end close.

📈 Cash Flow Tracking Template

Consistent cash flow visibility prevents the surprises that derail growth decisions. A simple tracking structure you can implement immediately:

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Operating Cash Flows

Track monthly cash collected from customers, cash paid to vendors and employees, and net operating cash position. Compare actual vs. prior month and prior year.

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13-Week Cash Forecast

Project expected cash inflows (collections, receivables, contracts) and outflows (payroll, rent, obligations) 13 weeks forward. Update weekly for accuracy.

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Cash Reserve Tracking

Maintain a minimum operating reserve equal to 60–90 days of fixed costs. Track reserve balance monthly and flag when it falls below target.

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Variance Analysis

Compare forecasted vs. actual cash flows monthly. Document significant variances and adjust future forecasts to reflect what you've learned.

🔍 Entity-Level Tax Hygiene Guide

Proactive tax discipline throughout the year reduces year-end surprises and preserves the strategic planning windows that create the most value. Essential practices:

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Quarterly Estimated Tax Payments Pay quarterly estimates on time to avoid underpayment penalties. Calculate based on prior year safe harbor or current year projection — whichever is more advantageous.

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Separate Business & Personal Finances Dedicated business accounts and credit cards for all business activity. No commingling — this is fundamental for both tax accuracy and entity liability protection.

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Document All Business Expenses Receipts and documentation for every deductible expense. Mileage logs, home office calculations, and meal documentation maintained consistently.

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1099 Contractor Tracking Track all contractor payments throughout the year. Collect W-9s before payment, not at year-end. File 1099s by January 31st deadline.

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Entity Structure Review Confirm your current entity type (LLC, S-Corp, C-Corp) is still optimal for your revenue level and tax situation. Review annually as income and goals evolve.

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Year-End Tax Planning Window Meet with your CPA before December 31st — not after. Timing decisions on income, expenses, and retirement contributions can only be made before year-end.

Ready to Move Beyond Basic Bookkeeping?

Once your financial foundation is solid, GRF Financials delivers the executive-level advisory that transforms accurate books into strategic growth decisions.

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