How often should you do your bookkeeping?

When you are running a business, bookkeeping can easily slip down the to-do list. It is one of those admin jobs that gets pushed aside until your accountant chases you, a VAT deadline appears out of nowhere, or you realise you are not sure where the money has gone.

But how often should you actually be doing it? Weekly? Monthly? Once a year in a mad rush?

In this Back to Basics article, we look at how bookkeeping frequency affects your time, tax, compliance, and decision-making, and why staying on top of it regularly can save you money, protect your cash flow, and help you grow.

The “last-minute” method – why it costs more than you think

Some business owners leave their bookkeeping until the last possible moment, usually just before the year-end accounts are due. We understand why. When you are busy running a business, data entry is not a priority.

The problem is, last-minute bookkeeping rarely saves time or money. Sorting out a year’s worth of transactions in one go creates more errors, more missing paperwork, and more missed opportunities. You lose the ability to plan your tax properly, and your accountant may spend more time (and charge more) to fix it.

Even more worrying, you can miss big issues like poor cash flow, unpaid invoices, or rising costs until they have already caused damage. What feels like a time-saver is often the opposite.

Leaving things too long can also risk missed VAT return deadlines or filing errors, which can lead to HMRC penalties and interest charges.

Monthly bookkeeping – better, but still reactive

Doing your bookkeeping monthly is a big improvement. You get a clearer view of how your business is performing, your VAT records stay up to date, and your year-end becomes much smoother.

Monthly updates also make it easier to spot trends such as rising costs, falling margins, or persistent late payers. It gives you more time to plan for tax rather than reacting at the last minute.

However, monthly bookkeeping can still leave you a step behind. If a customer payment is late or your expenses spike, you might not spot it for weeks. For growing businesses or those with tight margins, four weeks can be a long time to wait before you know something has gone wrong.

Why we recommend weekly bookkeeping for most growing businesses

Weekly bookkeeping gives you the most control. Your data is always up to date and accurate, turning your records from a historic report into a live business tool.

When your books are updated every week, you know your bank balance, profit, outgoings, and customer payments in real time. You can spot cash flow issues early, chase late invoices while they are still fresh, and avoid last-minute panics when VAT returns are due.

It also gives your accountant better visibility. When we can see what is happening in your business weekly, we can help you make smarter decisions – whether that is adjusting directors’ salaries, planning dividends, or cutting unnecessary costs before they add up.

One client who moved from annual bookkeeping to weekly updates spotted a recurring cost that was eating into profits. They renegotiated the contract and saved thousands a year — savings they would not have spotted without up-to-date information.

What is right for your business?

There is no single answer. Smaller businesses with steady income and costs may be fine with monthly updates. But if your business is growing, you handle stock, projects, subcontractors, VAT, CIS, or overseas transactions, weekly bookkeeping will keep you safer and give you more insight.

Some industries benefit from even more frequent updates.

• Construction – Weekly bookkeeping ensures CIS deductions are recorded accurately and subcontractor payments are up to date.
• Retail and e-commerce – Daily or weekly reconciliations keep stock levels accurate and sales trends visible.
• Professional services – Regular updates make cash flow forecasting easier and help track billable work in progress.

What to do between bookkeeping updates

Even if you outsource, you can make your bookkeeping faster and more accurate by:

• Keeping receipts and invoices organised
• Matching payments to invoices promptly
• Using your accounting software’s mobile app to capture expenses on the go
• Reconciling your bank feed regularly

These small habits save time and improve accuracy, making your bookkeeping a far more useful tool

Bookkeeping is not just for HMRC. Done properly, it is a core part of running your business. It helps you grow, plan, and sleep better at night. Whether you do it weekly, monthly, or somewhere in between, the key is to make it a regular, proactive habit rather than a once-a-year scramble.

If you want a system that works for your business and frees up your time, get in touch. We can review your current process, show you where you could improve, and set up a routine that keeps your numbers accurate and your decisions sharp.