Bookkeeping is one of the most important aspects of any small business. It cannot be easy to keep track of all your finances, but with a well-organised bookkeeping checklist, you can stay on top of your business’s financial stability. This blog post will provide you with an essential bookkeeping checklist for small businesses.
We’ll review everything from tracking expenses to recording income and creating invoices. This checklist will help you maintain accurate records and ensure your business stays financially healthy!
Why do you need a bookkeeping checklist?
As a small business owner, bookkeeping is one of the most important things you can do to keep your business running smoothly. Not only does it help you track your income and expenses, but it also provides valuable insights into your business finances. However, bookkeeping can also be a complex and time-consuming task.
That’s why it’s important to have a bookkeeping checklist to help you stay organised and on track. A good bookkeeping checklist should include all the key elements of bookkeeping, such as income and expenses, bank statements, and asset depreciation. By following a simple checklist, you can ensure that your bookkeeping is accurate and up to date, providing valuable peace of mind for yourself and your business.
Your bookkeeping checklist
Maintaining accurate bookkeeping is essential for any business owner. Fortunately, several simple steps can be taken daily, weekly, monthly, quarterly, and annual to keep your financial records in order. For example, daily, you should reconcile your bank statements and update your cash flow spreadsheet.
Every week, you should review your accounts receivable and accounts payable. Every month, you should close your books and prepare financial statements. And on a quarterly and annual basis, you should perform more comprehensive reviews of your financial position. By following this simple checklist, you can ensure that your bookkeeping is always up-to-date and accurate.
Daily bookkeeping to-do’s!
As a small business owner, you wear many hats. In addition to being the face of your company, you are also responsible for its day-to-day operations. This includes keeping track of your finances. While it may seem tedious, regular bookkeeping is essential for the success of your business.
Review how much cash you have on hand.
It’s the middle of the month, and you’re starting to get a handle on your finances. You know how much money you have coming in and steadily paying down your debts. But there’s one financial task that you often overlook: bookkeeping. Reviewing your finances daily may seem overkill, but it’s an important part of effective money management.
You can catch problems early by tracking your cash flow daily and adjusting your budget accordingly. Plus, it can help you identify spending trends and make informed decisions about future purchases
Update your bookkeeping software.
You should always keep your financial/bookkeeping software like Xero or QuickBooks up-to-date, so you have a precise idea of your business finance and can generate the correct reports when needed. Before you finish work for the day, check your software to see if any client payments or expenses need to be recorded and categorised. If so, take care of them, so you’re not returning later.
Track your expenses
Anyone serious about their finances knows that one of the most important things you can do is keep track of your expenses. Knowing where your money is going makes informed choices about how to save and where to cut back.
There are several different ways to track your expenses, but one of the most effective is to use a daily bookkeeping system. This means setting aside a few minutes each day to write down all of your outgoing costs. While this may seem like a tedious task, it can be invaluable in helping you to keep control of your finances. In addition, by tracking your expenses regularly, you will be able to spot any unusual or unexpected patterns that may emerge. So if you are serious about getting your finances in order, keep a daily record of your spending.
Weekly bookkeeping to-do’s
As any small business owner knows, bookkeeping is an essential part of running a successful operation. Not only does it help to ensure that finances are being properly managed, but it can also provide valuable insights into where money is being spent and how profits can be maximized.
While many business owners outsource their bookkeeping to professional firms, there are still some key Weekly bookkeeping to-do’s that should be handled in-house. Here are three of the most important:
Examine your company bank accounts and credit card accounts for accuracy.
As a business owner, keeping a close eye on your company’s finances is essential. That’s why performing a monthly (or even weekly) review of your bank and credit card accounts is important. By taking the time to reconcile your accounts, you can ensure that all your transactions are accurate and up-to-date.
This process can also help you catch any suspicious activity, fraudulent charges, or errors. Furthermore, keeping accurate financial records is crucial for tax purposes. So if you want to avoid any headaches come tax season, stay on top of your company’s bookkeeping.
Review and pay invoices.
Reviewing and paying invoices should be a regular part of your bookkeeping checklist. By staying on top of your invoices, you can avoid late payment fees, keep your vendor relationships strong, and maintain good credit. When reviewing invoices, take the time to check for accuracy.
Ensure that you received the goods or services you were billed for and that the prices are correct. If you have questions, reach out to your vendor before paying the invoice. Once you’re satisfied that everything is in order, you can pay the invoice using your preferred method (e.g., online banking, check, or money order). You can avoid being overwhelmed by a backlog of invoices by staying organised and taking care of your bookkeeping weekly.
Invoice weekly
One of the most important things you can do for your business is to stay on top of your invoicing. This means sending out invoices regularly and tracking who has paid and hasn’t. This can be a lot to keep track of, but it’s essential for keeping your cash flow positive.
One way to ensure you’re staying on top of your invoicing is to add it to your weekly bookkeeping checklist. This will help you stay on top of everything and that nothing falls through the cracks. Plus, it will help you keep track of your progress over time.
Sending invoices may not be the glamorous part of owning a business, but it’s essential to keep the wheels turning. So make sure you’re staying on top of it!
Upload your receipts.
Keeping accurate records is one of the most important and often overlooked aspects of running a business. This means more than just maintaining a good filing system, and it also means regularly tracking your expenses and income. One way to do this is to upload your receipts.
You can keep an up-to-date record of your spending by taking a few moments each week to scan or photograph your receipts. This information can be invaluable when it comes time to prepare your taxes or apply for a loan. So don’t let those receipts pile up – take the time to upload them today.
Monthly bookkeeping to-do’s
Monthly bookkeeping to-do’s help keep your business organised and running smoothly and place a big part in your bookkeeping checklist. Reviewing your financials regularly ensures that you are aware of your company’s financial health and can make necessary changes to keep things on track.
Additionally, staying on top of your bookkeeping can help you identify any potential red flags or areas of improvement. Monthly bookkeeping to-do can seem daunting, but by breaking things down into a few simple tasks, you can easily stay on top of your finances. Below are a few key monthly bookkeeping checklist.
Payroll and payroll tax payments
A monthly bookkeeping checklist can seem daunting, but they can be easily accomplished with a little planning. One of the most important tasks on your bookkeeping checklist is to run payroll and make payroll tax payments, and this can be done using online software or by working with a professional bookkeeper.
Either way, it is important to ensure that all employees are paid on time and that the correct taxes are withheld. Another key task is to reconcile bank and credit card statements, which helps ensure that all transactions are accounted for and that there are no discrepancies. Monthly bookkeeping can be time-consuming, but it is essential for keeping accurate financial records.
Balance sheet review and update
Monthly bookkeeping to-dos for business owners include reviewing your balance sheet. The balance sheet is a report that provides a snapshot of your company’s financials at a particular moment in time. It includes three sections: assets, liabilities, and equity.
This information can help you understand your company’s financial health and decide how to use your resources. Reviewing your balance sheet regularly can help you catch financial problems early and make informed decisions about how to grow your business.
Past-due date invoices follow up
You know the drill: you send out an invoice, wait a few weeks, and then wonder if you’ll ever see that money. First, check your records to ensure that the invoice was sent to the correct address and that it wasn’t lost in the shuffle.
If everything looks correct, give your customer a call or email them to inquire about the payment status. Be polite but firm in your request, and include the invoice number and date. If you still don’t hear back, you may need to hire a collections agency or take legal action. In any case, Monthly Bookkeeping To-Do’s, including Following Up On Past-Due Invoices, will help you keep on top of your finances and get paid for your work.
Quarterly bookkeeping to-do’s
No matter what business you’re in, a quarterly bookkeeping checklist is vital to keeping your company organised and on track financially. Here are four Quarterly bookkeeping to-do’s that will help keep your business running smoothly.
Review your financial statements from the previous quarter
A quarterly bookkeeping checklist includes reviewing your financial statements from the previous quarter. This is an important task because it allows you to track your progress and ensure that your business is on track. Reviewing your financial statements can also help you identify any areas where you need to make changes.
For example, if your expenses are starting to exceed your income, you may need to cut back on some of your expenses. Quarterly bookkeeping can be a lot of work, but keeping your business on track is worth it.
Pay estimated taxes.
Paying estimated taxes is one of many businesses’ most important quarterly bookkeeping checklists. This is because when you file your Quarterly Taxes, you are required to pay any tax that is due for the current quarter and any tax that was due but not paid for the previous quarter.
If you don’t pay your Quarterly Taxes on time, you may be subject to interest and penalties. Quarterly Taxes are due on April 15, June 15, September 15, and January 15. To calculate your Quarterly Taxes, you must estimate your annual income and expenses. You can use last year’s taxes as a guide, but be sure to make any necessary adjustments based on changes in your business. Once you have calculated your Quarterly Taxes, you can make a payment online, by mail, or in person at a local IRS office. Quarterly Taxes are an important part of maintaining your business, so be sure to stay on top of them!
Submit quarterly payroll reports and payments.
Though it may seem daunting, Quarterly bookkeeping is a key part of keeping your business organised and compliant. Not only does it ensure that your payroll reports and payments are up to date, but it also provides a valuable opportunity to review your finances and ensure that your records are accurate.
Quarterly bookkeeping can be time-consuming, but it’s well worth the effort. By staying on top of your financial reports, you can avoid costly mistakes and keep your business running smoothly.
Update your accounts receivable and accounts payable records.
Updating your accounts receivable (A/R) and accounts payable (A/P) records is one of the most important quarterly bookkeeping to-do’s. Without accurate and up-to-date records, it isn’t easy to keep track of how much revenue customers owe you and how much you owe to vendors. This can lead to cash flow problems and, in extreme cases, insolvency. Maintaining A/R and A/P records is therefore crucial for the financial health of your business.
Annual bookkeeping to-do’s
As a small business owner, you have a lot on your plate. You also have to keep track of your finances in running your day-to-day operations. This can be daunting, but it’s important to stay on top of your bookkeeping. By taking care of your annual bookkeeping checklist, you can ensure that your financial records are accurate and up-to-date.
Collect any outstanding debts and close out your books.
As the end of the year approaches, taking care of some annual bookkeeping to-do’s is important. One of the most important is to collect any outstanding debts. This will help you close out your books for the year and avoid penalties or interest charges. It’s also good to review your records for the year and ensure all transactions are accounted for. This will help you stay organised and prepare for the next year.
Finally, update your contact information and sign any new contracts or agreements. You can start the new year off on the right foot by taking care of these annual bookkeeping tasks.
Create your year-end financial reports.
Annual bookkeeping to-dos include creating your year-end financial reports. This gives you an accurate snapshot of your company’s financial health. Year-end reports can monitor progress and make necessary changes for the upcoming year. Having these reports also gives you the ability to file your taxes correctly.
Without them, you may end up overpaying or underpaying, which can result in penalties. In short, taking the time to create your year-end financial reports is a vital part of being a responsible business owner.
Gather the necessary information for your taxes.
In addition to your year-end financial report, your tax professional will need a variety of additional documentation to accurately prepare your tax returns and move forward with your tax filings (like your bank statements, payroll reports, and other financial statements). Make sure you gather all that information at the end of the year and have it ready to pass off to your accountant.
File your tax return.
One of the most important annual bookkeeping to-do’s for many people is filing their tax returns. Depending on your country, this may be something you do yourself or hire an accountant to do for you. It can be a complex and time-consuming task for those of us who are self-employed or have multiple sources of income.
However, staying on top of it and ensuring your taxes are filed on time is important. Not only will this avoid penalties and interest charges, but it will also help to keep your financial records in order. So if you haven’t already done so, take the time to file your tax return today.
In conclusion
It’s important to stay on top of your bookkeeping by completing your annual bookkeeping to-do’s. This will help you maintain accurate financial records and avoid penalties or interest charges. You can start the new year off on the right foot by taking care of your annual bookkeeping tasks.
Contact the Ingrams Accounting team today if you need help with your bookkeeping checklist
This information is general and prepared without considering your objectives, personal or business circumstances, financial situation, or needs. Because of this, before acting on this information, you should consider its appropriateness in consultation with your adviser regarding your objectives, personal or business circumstances, financial situation and needs.
With an eye like no other, master untangler Cathy’s extreme attention to detail ensures your numbers add up and that every number is accounted for.
With a multitude of qualifications and certifications in Bookkeeping, BAS Agent, XERO Advisor and Payroll, number ninja Cathy is the secret weapon you need to run even the most intricate accounts.
She’s your secret weapon for getting on top of your numbers.She’s a guru and getting accounts codes set up in Xero and getting on top of your data entry so that you can have real-time accounts transparency.
If you want to book a bookkeeper, drop her a line.
Plus, Cathy knows her way around the ATO portal better than anyone. So if you need help, she’ll work through the most complex accounts!
Qualifications & Memberships include:
Certificate IV in Bookkeeping – Swinburne
Institute of Certified Bookkeepers
BAS Agent
Xero Advisor, Xero Payroll
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