Infographic: Small Business Accounting, 21 Things to Do and When to Do Them
An infographic from Quickbooks that takes a look at 21 things small businesses should be doing on a monthly basis.
Check Cash Position
Start every day by knowing exactly how much cash you have on hand. You don’t want to be running on empty.
Record every transaction (i.e. customer billings and payments, vendor payments, etc.) into the proper account at least every week.
Document and File Receipts:
Keep copies of all invoices, cash receipts and cash payments, and add them to organized files for easy reference.
Review Unpaid Bills:
Create records for each of your vendors, keep track of and billing dates, amounts due and payment due dates.
Prepare and Send Invoices:
Be sure to include payment terms in invoices, and consider offering early payment incentives to get paid on time.
Pay Vendors, Sign Checks:
Track accounts payable, and earmark funds to pay your suppliers on time.
Review Projected Cash Flow:
Create a statement showing your current cash position, expected cash receipts and expected cash payments for the upcoming week.
Balance Your Checkbook:
Make sure your cash transaction entries are accurate and that you’re working with the correct cash position.
Review Past-Due Receivables:
At the beginning of the month, send out friendly reminders to customers, clients and anyone else who owes you money.
Analyze Inventory Status:
Reorder products that sell quickly, and identify others that are moving slowly and may need to be marked down or axed.
Withhold, report and deposit the applicable income, Social Security, Medicare and disability taxes to the appropriate agencies by theft due dates.
Review Actual Profit and Loss vs. Budget:
If you don’t have a budget prepared, compare your current profit and loss with the same prior-period year-to-date statements.
Review Month-End Balance Sheet vs. Prior Period:
Compare current balance sheet with one from the same period in the previous year to see how you’re managing your assets and liabilities.
File Estimated Quarterly Taxes:
Review Quarterly Payroll Reports: Pay estimated taxes every The IRS and most states require quarter to avoid fines & loose: quarterly payroll reports and your year-end tax burden. payments.
Review Sales Tax & Make Payments:
If you operate in a state that requires sales tax, be sure to comply with all required payments.
Prepare Annual Profit & Loss Estimate:
Evaluate how much money you’re actually making, the difference between revenue and expenses, and what caused those changes.
Review Past-Due Receivables:
Check past-due receivables, and decide whether to send past-due bills to a collection agency or write them off for a tax deduction.
Review Your Inventory:
Calculate the value of items not sold. Then, use the unsellable inventory as a deduction for your year-end taxes.
Review & Approve Year-End Financial Reports & Tax Returns:
Be sure to review everything before sending your documents to your accountant and/or the tax office.