Business Bookkeeping Checklist: Get Organized, Stay Organized

ARLINGTON HEIGHTS, Ill. - Jan. 24, 2017 - PRLog -- A new year provides the ideal opportunity to get your business finances in shape. The calendar makes this time prime for two reasons. First, in the first weeks of a new year, you're open to changing habits for the better and to making a fresh start. Applying that clean-out-the-clutter mentality to your business finances is smart. Second, you'll need to get your business finances in order as you begin tax preparation — you'll be more organized to accomplish that by putting Business Bookkeeping Checklist in place.

An accounting checklist is a useful tool to help you tackle the bookkeeping on a regular basis. Checklists are smart tools because they take the guesswork out of your tasks and make them healthy routines. When you make this checklist part of your regular accounting procedures, you'll have your finger on the pulse of every financial aspect of your business. In the end, being on top of your finances provides peace of mind.

Daily Bookkeeping Tasks

Daily bookkeeping tasks ensure you've got the cash you need for business operations to run smoothly.

·         Resolve to start each business day knowing total cash on hand—cash on hand is liquid capital available to invest in the business.

Weekly Bookkeeping Tasks

Staying on top of weekly tasks sets you up for success. Stay prepared for important quarterly and annual accounting tasks.

·         Record each transaction using a desktop or online accounting software like QuickBooks.

·         Save and file your receipts. These include copies of all invoices sent, all invoices paid, as well as all receipts for cash purchases and expenses. If you don't already have a vendor file, consider establishing one so that you organize all invoices and receipts under the appropriate vendor file.

·         Monitor all accounts payable. Create an "unpaid invoices" folder to regularly monitor what is owed by whom—and when you expect to receive payment.

·         Track your accounts payable. Pay what is owed on time, taking advantage of any discounts, and keep copies of all invoices sent and received (either in electronic or paper form).

·         Review cash flow. Ensure you've set aside necessary funds to pay suppliers, vendors, and employees.

Monthly Bookkeeping Tasks

Tasks in a monthly accounting checklist help you keep an eye on revenue and expenses.

·         Balance your business checkbook to ensure you have an accurate grasp on your cash position. A monthly bank reconciliation is essential to maintain the integrity of your accounting records.

·         Review past-due receivables and request payment. Review your "unpaid invoices" file and send "aged" or "past-due" invoices as appropriate. Regular attention to collections brings great rewards.

·         Manage inventory. Inventory management is a regular, ongoing task. Assess what sold quickly, as well as what items may need to be marked down. Performing a monthly inventory reduces shrinkage and makes sure you have the goods on hand your books say you do.

·         Process payroll and tax payments. You're likely already paying employees on a regular basis, and you'll also need to set aside funds for local, state, and federal taxes. We recommend using a payroll service to avoid penalties for late payment or filing and to free up time to concentrate on what you do best.

·         Creating and reviewing a monthly budget lets you know if you are on track to accomplish your goals.  A revenue and expense budget is crucial to a business which is seasonal or has ups and downs. You will want to determine actual profit and loss to see where deviations occurred—and analyze why.

·         Review month-end statements against prior periods. The same analysis you apply to your budget and P & L is an exercise you should carry over to your month-end statements. Comparing prior years against each other can help you assess fluctuations and plan better for the future.

Quarterly Bookkeeping Tasks

·         Pay sales tax quarterly (monthly if you are a large retailer).

·         Review quarterly payroll reports and make any remaining quarterly payments.

·         Compute and pay estimated taxes, especially if you have a profitable S Corporation or Partnership where the money flows to your personal returns.

Annual Bookkeeping Tasks

·         Review and make determinations about your past-due receivables. You'll need to decide if they are collectible or not.

·         Examine and make determinations about inventory. You can write down unsellable products to ensure your stated inventory balance is accurate. This helps avoid paying additional taxes on those items.

·         Fill out IRS W-2 and 1099 forms for all employees and independent contractors in advance of January 31 filing deadline (new for 2016 forms).

·         Carefully review full-year financial reports before providing them to your accountant. Also, carefully review prepared tax returns before signing them.

A regular accounting checklist requires an investment of time throughout the year—but it can save you time and money in the long run. At McClure Inserra & Co, we have over 30 years' experience helping small and mid-sized businesses and nonprofits navigate the complexities of accounting and tax law. Contact us to talk about how we can help you, too.  http://www.micpa.com/bookkeeping-checklist/