The National Federation of Independent Businesses (NFIB) suggests reviewing and reconciling all bank and credit card accounts should be at the top of a business owner’s list of tasks at the end of the month. With that bookkeeping work completed, it’s time to think about more involved tasks around month-end.īalance the books. Every week, the business should set aside time for miscellaneous bookkeeping tasks such as emailing clients account statements. Make sure to have different people cut and sign the checks to prevent fraud.įinancial housekeeping. Employees should reconcile invoices with purchase orders and confirm receipt of goods before payment (i.e., three-way match). Much like with AR, a company can set up an accounts payable (AP) aging report in its account system to track money owed and due dates. Determine what bills are due next and lay out a plan for paying them. Accounting software can create these reports and update them in real time. If accounts receivable (AR) are completed manually, the IRS recommends setting up an “aging” column in the books to organize open invoices based on the number of days a bill is past due. Identify customers who haven’t paid invoices on time and follow up by email and phone. If there is a high cash volume, reconcile daily.Ĭheck what you owe and who hasn’t paid you. Don’t have the same person who handles the cash handle the bank reconciliation. The business can define the matching rules in the system for reconciliation, which simplifies the process. This means the bookkeeper isn’t forced to manually download the bank statement and import it. Integrating a bank feed simplifies this process by providing a digital link between the bank account and the accounting software and imports bank transactions daily. Compare deposits listed on the bank statement with deposits shown in the accounting system. It can help the company understand its current cash position.Īt least once a week, the bookkeeper needs to make sure all the numbers add up and there is enough cash to cover expenses. A daily summary of cash receipts is helpful because it gives the business owner an idea of how much money it took in that day. The IRS recommends paying all business expenses by check, noting on the deposit slip the source of the deposit and keeping copies of all slips. Keep all receipts and other relevant documents for tax purposes and for reference in case there are errors when balancing the books. Check all incoming invoices and enter them into the accounting system. Doing this daily gives the company an up-to-date picture of its available cash.Įnter and pay bills. Enter all credit card transactions to initiate the transfer of funds from the customer. Deposit all cash and check payments received from customers in the business’s checking account. Daily Accounting TasksĮach and every day, the bookkeeper needs to complete tasks associated with recording transactions.ĭeposit all payments. Let’s take a look at key steps in the accounting process by reviewing the different tasks small business bookkeepers perform by day, week, month, quarter and year. At its most basic level, effective bookkeeping will track what the business owes to others, what it is owed, ensure bills are paid on time and customers pay on time, calculate and pay state and federal taxes, and provide a snapshot of the company’s financial state. Accounting and Bookkeeping Tasks for a Small Businessīookkeepers are responsible for many tasks, and in small businesses, some of those responsibilities fall on the owner, as well. But there are still common steps every business should follow to ensure sound bookkeeping practices. The exact steps a small business will take when it comes to bookkeeping and accounting processes will differ according to the industry, size of the business and accounting team, the sophistication of the accounting system and other factors. East, Nordics and Other Regions (opens in new tab)
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