Bookkeeping for online sellers: a monthly checklist

Bookkeeping feels heavy when it is done once a year in a panic. Done monthly, it is a one-hour routine that tells you something valuable: whether your shop is actually making money.

Block an hour in the first week of each month and work through this checklist for the month that just ended.

Note: This is a general routine, not accounting or tax advice. Rules differ by country, so ask an accountant how they apply to you.

The ten-step monthly routine

1. Download your statements

• Bank statement for the business account
• Reports from each payment provider (card processor, PayPal and so on)
• Sales and payout reports from each store or marketplace

Save them in one folder per month. Future you will be grateful.

2. Match payouts to sales

This is the step online sellers most often get wrong. The amount that lands in your bank is not your sales figure: it is sales minus fees, refunds and sometimes taxes collected for you.

For each payout, record the parts separately:

Line	Example
Gross sales	2,000.00
Refunds	−80.00
Platform and payment fees	−120.00
Net payout received in the bank	1,800.00

If you only record the 1,800, you understate your sales and lose track of what the platform costs you.

3. Record your expenses

• Stock purchases and supplier invoices
• Shipping and packaging
• Software subscriptions
• Advertising
• Everything else: fees, equipment, professional services

Put each expense in a category, and use the same categories every month so you can compare.

4. Save the receipts

For every expense, keep the receipt or invoice as a PDF or photo, named with the date and supplier. A bank statement line alone is often not enough proof for tax purposes.

5. Reconcile the bank account

Check that every line on the bank statement is in your books, and that the closing balance in your books matches the bank. If they differ, something is missing or entered twice. Find it now, while the month is still fresh.

6. Chase unpaid invoices

If you invoice business customers, list what is still unpaid and send reminders. Our guide to payment terms includes a reminder email you can copy.

7. Set money aside for taxes

If you collect sales tax, VAT or GST, that money is not yours; you are holding it for the tax office. Move it to a separate savings account each month, together with an estimate for income tax, so the bill never comes as a shock.

8. Update your stock value

Note the value of the stock you hold at the end of the month, at the price you paid for it. This matters because the cost of goods only counts against your profit when the goods are sold, not when you buy them. A regular stock count keeps this number reliable.

9. Look at the result

Now the useful part. Calculate, or let your software show you:

• Sales for the month
• Cost of goods sold: what the products you sold cost you
• Gross profit: sales minus cost of goods sold
• Expenses: everything else
• Net profit: gross profit minus expenses

Compare with last month and with the same month last year. Ask one question: what changed, and why?

10. Back up

Export or back up your records. If you use a spreadsheet, save a dated copy.

A few rules that make every month easier

• One bank account for the business. Never mix personal and business spending.
• Record as you go. Photograph receipts the day you get them.
• Same day every month. A routine you keep beats a perfect system you avoid.
• Ask for help early. An hour with an accountant when you set up is cheaper than fixing a year of errors.

Spreadsheet or software?

A spreadsheet is fine when you have one sales channel and a few dozen transactions a month. Accounting software becomes worth it when you spend more than a couple of hours a month on data entry, sell on several channels, or need to track taxes collected. Most tools can import bank transactions automatically, which removes the most tedious step. For the basics of invoices themselves, see invoicing basics for small online sellers.

The checklist in short

• Statements and reports downloaded
• Payouts matched to gross sales, refunds and fees
• Expenses recorded and categorized
• Receipts saved
• Bank account reconciled
• Unpaid invoices chased
• Tax money set aside
• Stock value updated
• Profit reviewed and compared
• Records backed up