As a small business owner, there are more important business tasks that you need to look after than bookkeeping. Staying on top of your business books will not only help you ensure things will run smoothly, but it can help you spot any financial issues and fix them before they get out of control. However, if you are not a professional in dealing with numbers, then you should seek help from bookkeepers for small businesses.
Why You Should Make a Bookkeeping Checklist?
Before you explore a bookkeeping checklist, you must know the importance of preparing a bookkeeping checklist. The following are some reasons to have a checklist of bookkeeping:
• Keep you organised
It will keep your business finances organised, you know what you should do, and when you should do and it can help you check each task when you work through them.
• Ensure you nothing is missing
There are a number of accounting and bookkeeping tasks you need to perform to ensure everything is running smoothly in your business. Having a checklist will ensure that nothing is missing and you successfully complete the tasks. Small business bookkeepers in Melbourne know how to manage everything related to business finance to ensure everything is going well.
• Assign duties to a bookkeeper
You may choose to delegate your bookkeeping responsibilities to someone else at some time (for example, if you hire a controller or outsource your financial tasks to a bookkeeper, a CPA, or an accounting expert who provides bookkeeping services). A bookkeeping checklist makes it simple to train and onboard someone to take over your company’s bookkeeping—and provides them with a specific list of all the additional chores they’ll be responsible for.
Bookkeeping Checklist for Small Businesses
Now, you have an idea of why you should prepare a bookkeeping checklist. Let’s jump into bookkeeping tasks you should include on that checklist:
• Daily Bookkeeping Tasks
◦ Review cash flow
It is important to keep track of cash inflow and outflow. You may want to know how much cash is flowing in and out of your account.
◦ Update bookkeeping software
If you use bookkeeping software, it is important to update it when you notice any new feature in the software. When you choose bookkeeping services for small businesses, then bookkeepers will ensure to update bookkeeping software for better performance.
• Weekly Bookkeeping Tasks
◦ Bank account reconciliation
The sooner your bookkeeper spots any inconsistencies on your business bank, they will resolve that issue, that’s why they plan to review and perform bank reconciliation on a weekly basis.
◦ Review and make payments
If you work with any vendor, you must pay them on time. Every week, ensure to review your open invoices and make payments to any vendors.
◦ Send invoices
If you send invoices at the right time, you will get paid at the right time. When you opt for small business bookkeeping services, your bookkeeper will ensure to send invoices on time.
• Monthly Bookkeeping Tasks
◦ Payroll processes
You need to run payroll at least once a month. If you have a bookkeeper, then they will make sure to payroll processes and make payroll tax payments.
◦ Review balance sheet
You can have an idea of your financial performance for the month by reviewing your balance sheet.
• Quarterly Bookkeeping Tasks
◦ Check your annual profit and loss statement
It is important to consider checking your profit and loss statement to know the financial status of your company.
◦ Pay taxes
You will need to pay several quarterly employment taxes. You can also seek help from a tax accountant in Melbourne to pay taxes on your behalf.
• Annual Bookkeeping Tasks
◦ Create financial reports
It is essential to create year-end financial reports to get an idea of financial performance for a year that you can send to your accountant for tax purposes.
◦ File your tax return
Lodging your business taxes is one of the most essential bookkeeping tasks, so make sure to lodge your tax return each year.
Conclusion
The blog outlines the bookkeeping checklist that you need for your small business. If you want to stay on top of your business finances, you can also seek help from a Reliable Bookkeeping Services provider.
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