Starting a business gives you some high. Your new endeavor provides you with a lot of enthusiasm. But then, it’s not that way all the time, you have to think of the “dirty” work or the responsibilities that accompany it.
One of this responsibility is bookkeeping. Most business owners look at bookkeeping as a time waster, but unaware that this may cause their business to make or break.
If you want to make your business grow, bookkeeping is one area where you have to give focus first.
Bookkeeping is about maintaining financial records. This is crucial for a business to survive.
This article points out the importance of bookkeeping checklists.
Daily Bookkeeping Checklist and Tasks
1. Check Your Cash on Hand
Be aware how much you have on hand and your bank balance. All business owners must be ready for unexpected expenses.
2. Be Aware of Your Cash Inflow and Outflow
Keep a list of incoming and outgoing payments for the day. Doing so will give you the idea of your cash position for the day and the following day.
Monthly Bookkeeping Checklist and Tasks
Prepare and send invoices to your customers. The sooner you send invoices, the better. This facilitates faster settlement.
2. Customer Billings
Update your spreadsheet or the accounting software you are using. Don’t get distracted by other tasks, better yet hire an independent Xero bookkeeper sydney. Hiring one will do your business good, to give you more time to grow your business.
3. Customer Payments
Update your software wit the payments made by customers.
4. File Vendor Bills and Payment Records
Keep everything intact. This includes all physical copies of bills. Print e-bill as well. Index everything for ease of filing.
5. Vendor Payments
Record all payments made to the suppliers. If you keep up with your payments, it’s likely that your customers will keep up with theirs.
6. Keep Payroll File Updated
Be on top of the payroll and show your employees that you are in for the long haul.
7. Review Cash Flow
Check your cash flow regularly. Have a periodic cash flow projection. This makes you have a view of your cash flow goals.
Quarterly Bookkeeping Checklist and Tasks
1. Annual Profit and Loss Estimates
Check your profit and loss forecasts. How are you faring against the estimates?
2. Make Quarterly Payroll Payments
Quarterly payroll payments are due in the last month of each quarter. Be sure to put this in your system quarterly.
3. Make Quarterly Sales Tax Payments
To avoid penalties, you have to account for this and make the appropriate payments.
Annual Bookkeeping Checklist and Tasks
1. Year-End Inventory
Account for what is left at the year end. Which product did well in the current year and what product you have to stop selling.
2. Fill out Tax Forms
This is tedious, but it is required. Have it done and move on to the next task.
3. Financial Reports
Review the whole year financial reports. If you didn’t do well in the current year, there are opportunities for you to improve and keep up with your business goals.
4. Review Tax Returns
Do this before giving to your accountant.
For a business to succeed, make it a habit of setting aside time for bookkeeping tasks. Make this checklist as your guide, so you won’t miss out anything.