Bookkeeping Tasks: Daily, Weekly, Monthly And Yearly

Bookkeeping tasks are essential for maintaining accurate financial records and ensuring the smooth financial operation of a business. Bookkeeping tasks are time taking. Therefore, small business owners choose to hire professionals to take care of such tasks on their behalf. These tasks can be categorized into different timeframes: daily, weekly, monthly, and yearly. Here’s an overview of typical bookkeeping tasks within each category:

Daily Bookkeeping Tasks:

1. Recording Transactions: Enter all financial transactions into the accounting system, including sales, purchases, expenses, and payments.
2. Bank Reconciliation: Compare the company’s bank statements with the recorded transactions to ensure accuracy and identify any discrepancies.
3. Cash Management: Monitor cash inflows and outflows to maintain proper cash flow and ensure that the business has sufficient funds to cover its obligations.
4. Invoicing: Generate and send invoices to customers for products or services provided.
5. Recording Receipts: Record all incoming payments, including cash, checks, and electronic transfers.
6. Expense Tracking: Keep track of all business expenses, categorize them, and ensure that they are correctly recorded.
7. Petty Cash Management: If applicable, manage and record transactions involving petty cash.

Weekly Bookkeeping Tasks:

1. Review Accounts Receivable: Check outstanding invoices and follow up on overdue payments from customers.
2. Review Accounts Payable: Ensure that bills and invoices from vendors are accurate and schedule payments.
3. Employee Payroll: Review employee timesheets, calculate wages, and process payroll.
4. Inventory Management: Update inventory records to reflect any changes in stock levels.

Monthly Bookkeeping Tasks:

1. Financial Statement Preparation: Generate key financial statements, including the income statement, balance sheet, and cash flow statement.
2. Reconciliation: Reconcile bank accounts, credit card accounts, and any other financial accounts.
3. Depreciation and Amortization: If applicable, calculate and record depreciation for fixed assets and amortization for intangible assets.
4. Sales Tax Reporting: Calculate and report sales tax owed to the relevant tax authorities.
5. Review Financial Performance: Analyze the financial statements to assess the business’s financial health and identify trends.
6. Expense Analysis: Review expenses to identify cost-saving opportunities and ensure that they are within budget.

Yearly Bookkeeping Tasks:

1. Annual Financial Statements: Prepare comprehensive financial statements for the fiscal year.
2. Tax Preparation: Gather all necessary financial information for tax filing and work with an accountant to prepare and file business tax returns.
3. Budget Planning: Create a budget for the upcoming fiscal year based on historical data and projected growth.
4. Audit Preparation: If required, prepare financial records for external audits.
5. Asset Revaluation: Review the value of assets and adjust the balance sheet as necessary.
6. Update Chart of Accounts: Assess whether the chart of accounts needs any modifications to accommodate changes in the business.

Keep in mind that the frequency and complexity of these tasks may vary depending on the size and nature of the business. It’s also worth considering the use of accounting software to streamline and automate many of these processes, making bookkeeping more efficient and accurate.