Small business bookkeeping should be a task that is performed ongoing throughout the year. Many small businesses put off their bookkeeping tasks until year-end rolls around and it is time to do taxes. However, this allows for potential issues, including missed transactions and lost documents, and can be an overwhelming approach to what is much more manageable when handled throughout the year.
Daily & Weekly Tasks
Daily and weekly bookkeeping tasks help your business run on a daily basis. These tasks include; keeping track of receipts and daily cash flows, invoicing customers, paying bills and bank deposits. If you have employees then payroll and payroll taxes will also be frequent tasks. It is important that these tasks get sufficient attention to keep money in the bank, vendors and employees happy, and to stay out of trouble with government agencies.
Monthly bookkeeping tasks help keep business records clean and allow businesses to analyze how they are doing financially. Month end bookkeeping tasks include; reconciling bank and credit card accounts and financial reporting and analysis. Reconciling helps to ensure accurate records by bringing to attention any items that may have been posted incorrectly. Financial reporting and analysis includes reviewing your profit and loss statements and balance sheets, and making sure you understand what your numbers are telling you. Financial analysis helps a business make sure they are on track with their goals and allows management to make adjustments if goals are not being met.
Year-end for most people means – dreaded tax time. If you have maintained your accounting throughout the year, then your year-end tasks will be minimal and you won’t have to stress about getting a year’s worth of information documented for your tax return preparation. Instead you can focus on business operations for the New Year!
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