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Tips & Best Practices

Monthly Bookkeeping Workflow with TraceEntry

· 6 min read

A consistent monthly workflow saves time and reduces errors. This guide shows you how to integrate TraceEntry into your bookkeeping process for maximum efficiency.

The Monthly Workflow Overview

Whether you're managing one business or fifty clients, a repeatable process ensures nothing falls through the cracks. Here's the workflow we recommend:

  1. Collect bank statements (days 1-3 of the month)
  2. Process through TraceEntry (day 3-5)
  3. Review and reconcile (day 5-7)
  4. Import to accounting software (day 7-10)
  5. Generate reports and deliver (day 10-15)

Step 1: Collecting Bank Statements

Set Up Bank Access

For each client, ensure you have read-only access to download transaction exports. Most banks allow you to:

  • Download CSV or Excel exports directly
  • Set up automatic statement delivery via email
  • Grant accountant access with limited permissions

Standardize Your Date Range

Always pull the same date range—typically the 1st through the last day of the previous month. Consistency prevents duplicate transactions and gaps.

Tip: Create a checklist of all accounts for each client. Check off each one as you download to ensure nothing is missed.

File Organization

Use a consistent naming convention for downloaded files:

  • ClientName_BankName_YYYY-MM.csv
  • Example: AcmeCorp_Chase_2024-11.csv

Step 2: Processing with TraceEntry

Batch Your Uploads

Process all of a client's bank accounts in sequence. This helps you stay in context and catch any cross-account issues.

Select the Right Industry

Choose the industry template that best matches your client's business. If you're unsure, "Professional Services" or "General Business" work well as defaults.

Use Custom Accounts

If you've set up your client's Chart of Accounts in TraceEntry, the AI will assign both categories and account codes. This saves significant time during import. See our Custom Accounts Guide for setup instructions.

Processing Multiple Files

For clients with multiple bank accounts:

  1. Process checking account first (usually highest volume)
  2. Process savings and money market accounts
  3. Process credit card statements last

Step 3: Review and Reconcile

Focus on Low-Confidence Items

TraceEntry flags transactions with confidence scores below 75%. Start your review here—these are most likely to need correction.

Check for Patterns

Look for vendors that appear frequently. If the AI miscategorized one, use bulk edit to fix all transactions from that vendor at once.

Verify Large Transactions

Sort by amount and review the largest transactions. These have the biggest impact on financial statements if miscategorized.

Handle Transfers

Internal transfers between accounts should be categorized as "Transfer" or excluded from expense reports. Watch for:

  • Matching amounts on the same date across accounts
  • ACH transfers with the client's own name
  • Wire transfers between business accounts
Pro tip: When you correct a category, TraceEntry saves that vendor rule. Next month, the same vendor will be categorized correctly automatically.

Step 4: Import to Accounting Software

Export from TraceEntry

Choose your export format based on your accounting software:

  • QuickBooks Desktop — CSV with account codes
  • QuickBooks Online — CSV or Excel
  • Xero — CSV with specific column headers
  • Other software — Check import requirements

Map Fields During Import

Most accounting software lets you map CSV columns during import. Match:

  • Date → Transaction Date
  • Description → Payee/Vendor Name
  • Amount → Amount
  • Category → Expense Category (if supported)
  • Account → GL Account Code

Verify Import Success

After import, spot-check a few transactions to ensure they landed in the correct accounts. Check beginning and ending balances against bank statements.

Step 5: Generate Reports

Standard Monthly Reports

Most clients expect:

  • Profit & Loss statement
  • Balance Sheet
  • Bank Reconciliation summary
  • Accounts Payable aging (if applicable)
  • Accounts Receivable aging (if applicable)

Add Context

Include a brief summary highlighting:

  • Unusual or large transactions
  • Missing documentation needed
  • Questions for the client
  • Year-over-year comparisons

Efficiency Tips

Process Similar Clients Together

If you have multiple clients in the same industry, process them back-to-back. You'll stay in the mental context of that industry's typical expenses.

Set Up Recurring Reminders

Create calendar reminders for:

  • Day 1: Download bank statements
  • Day 3: Process through TraceEntry
  • Day 7: Complete review and import
  • Day 10: Deliver reports to clients

Track Your Time

Note how long each client takes before and after using TraceEntry. Most bookkeepers see 50-70% time reduction after the first few months.

Build Your Vendor Library

The more you use TraceEntry, the smarter it gets. Saved vendor rules accumulate over time, reducing manual corrections each month.

Handling Common Issues

Missing Transactions

If the bank export is missing transactions, download again with a wider date range. Some banks have delays in posting transactions.

Duplicate Transactions

Always use the same date range each month. If you accidentally overlap, most accounting software will flag duplicates during import.

Uncategorized Items

Some transactions may be too vague for AI categorization. Flag these for client clarification rather than guessing.

Start Your Workflow

Ready to streamline your monthly bookkeeping?

  1. Download this month's bank statements for your first client
  2. Upload to TraceEntry
  3. Time yourself to establish a baseline
  4. Track improvement over the next 3 months

Questions about optimizing your workflow? Contact us for personalized advice.