Bookkeeping for US LLCs: What You Need to Track Each Month

Accurate bookkeeping is essential for understanding the performance of your US LLC and maintaining clear records for tax, compliance and management purposes.

Monthly Tracking Essentials for Owner-Managed LLCs

• Business income by customer or revenue stream
• Operating expenses with supporting documentation
• Bank and credit-card transactions
• Owner contributions and withdrawals
• Loans made to or received from owners
• Accounts receivable and accounts payable
• Payroll and contractor payments
• Sales tax collected and paid
• Fixed assets and equipment purchases
• Business mileage and reimbursable expenses

Business and personal transactions should be kept separate. Mixing personal spending with LLC activity makes financial reporting more difficult and may weaken the separation between the owner and the business.

The accounting treatment can also depend on whether the LLC is treated as a disregarded entity, partnership, S corporation or C corporation for tax purposes.