For maximum efficiency, small and medium-sized firms must maintain specialized bookkeeping procedures. Smaller firms frequently have limited workforce, so they may have a lot on their plates and may find it easy to forget some important financial obligations.
For your small business, having a checklist to make sure that everything is taken care of might mean the difference between success and failure. You may maintain your attention where it is most needed: on your sales revenue, with the help of an accounting checklist.
A bookkeeping checklist makes it easier for business owners to keep a check on their finances and stay up to date. As per the size of the business and choice of the owners, a checklist can be of three major types. Daily Checklist, Weekly Checklist, and Monthly Checklist. Let us tell you about the topmost important checklist items which you cannot miss.
Benefits of A Bookkeeping Checklist
A bookkeeping checklist is a valuable tool for managing your finances effectively and efficiently. Here are some of the benefits of using a bookkeeping checklist:
- It helps you organize and prioritize your bookkeeping tasks, ensuring timely and accurate completion.
- It ensures compliance with legal and regulatory requirements, minimizing errors and maintaining accuracy in tax filings, financial reporting, and record keeping.
- It establishes strong financial control by outlining key management tasks, such as reconciling accounts, reviewing statements, monitoring cash flow, and tracking expenses, enhancing transparency and informed decision-making.
- It simplifies the audit process and reduces stress by maintaining accurate and well-organized records.
- It provides up-to-date financial data, enabling insightful analysis, performance tracking, and informed decision-making for future growth.
- It clarifies responsibilities, fosters effective collaboration, and facilitates delegation of bookkeeping tasks among team members.
- It accommodates increased complexity and transaction volume as your business grows, ensuring continuity during personnel changes and transitions.
Daily Bookkeeping Checklist
A daily bookkeeping checklist is a crucial tool for maintaining accurate financial records and ensuring the smooth operation of your business. It typically includes essential tasks that need to be completed daily. By consistently following a daily bookkeeping checklist, you can maintain financial control, make informed decisions, and have peace of mind knowing that your financial records are up to date and accurate. The essential items under a daily bookkeeping checklist include:
Cash on-Hand Review
To ensure financial preparedness and accuracy, it is beneficial to start each morning with a quick check of your available cash. This includes both your bank account and petty cash on hand. Maintaining sufficient funds for unforeseen expenses is prudent.
Documenting cash flow is essential. Promptly recording any payments made from or to petty cash or other accounts helps track cash balances effectively. It is important to complete the day with a final review, confirming the accuracy and currency of the information. This practice sets the stage for a well-prepared start on the following business day.
Account for Daily Expenses and Revenues
It is crucial to allocate time each day for recording all revenue and expenses. These records provide an updated overview that can be cross-checked against your cash on hand. By identifying any discrepancies promptly, you can take corrective measures before they escalate.
Effective cash flow management enhances your business’s preparedness for the future. Maintaining well-organized annotations of inflows and outflows, such as paid bills and daily sales totals, ensures your accounts remain current and accurate.
Categorize Transactions
Categorizing transactions is essential for businesses that have multiple expenses and income streams. It offers a quick overview of the financial direction and facilitates better financial management.
The primary categories for daily evaluation are income (credit) and expenses (debit). Expenses can encompass various items such as utilities, rent, raw materials, or parts, while income may include sales or service revenue. By assigning transactions to specific categories, you can easily assess where your finances are headed and make informed decisions.
Categorization enables you to track and analyze various aspects of your business’s financial health. It provides clarity and insight into the sources of income and areas of expenditure, assisting in identifying trends and adjusting, as necessary.
Weekly Bookkeeping Checklist
Weekly bookkeeping involves the regular review and recording of financial transactions on a weekly basis. It encompasses various tasks that contribute to maintaining accurate and up-to-date financial records. Weekly checklist items include:
Review Bills
Managing bills is a crucial aspect of running a business. Staying proactive and aware of upcoming bill deadlines prevents overdue payments and associated fees, while also enhancing the company’s reputation for timely payments. It is important to review various types of bills, such as, Rent, Utilities, Credit Card Bills, Insurance Premium, Vendors and Suppliers, etc.
Send Invoices
Invoicing clients promptly is essential for maintaining smooth financial operations. It is crucial not to blame customers for overdue payments resulting from missed invoices. To avoid such situations, sending invoice reminders for unpaid invoices may become necessary.
To ensure accuracy, it is important to check both paid and unpaid invoices, confirming they were recorded correctly and sent out in a timely manner. Customers dislike receiving reminders for invoices they have already paid, and overdue payments due to non-receipt of invoices can disrupt their own processes.
Reconcile Bank Statements
After reviewing bills, sending, and recording invoices, and dealing with POs and vendor deposits, the next stage is reconciliation. Reconcile bank and credit card balances by ensuring that your journals correspond to the bank. Match the beginning, middle, and final amounts (after adjusting for outstanding transactions).
Even while larger firms typically reconcile accounts and credit cards monthly, it would benefit a small business to reconcile accounts and credit cards weekly and compensate for any inaccuracies to avoid error build-up that may be difficult to trace at month end.
Monthly Bookkeeping Checklist
A monthly bookkeeping checklist is a tool that assists people or organizations in remaining organized and keeping correct financial records monthly. It usually includes important chores that must be accomplished each month. You may assure timely and accurate financial reporting, discover any anomalies or errors, and make educated decisions based on up-to-date financial information by using a monthly bookkeeping checklist. On a monthly basis, it supports financial control, compliance, and successful financial management. Here are the important items on a monthly checklist:
Update Bookkeeping Software
Accounting software can be a game changer for a small firm. Consider how much time it would take to search a physical ledger for a sale instead of using software.
Using obsolete, out-of-date software, on the other hand, is worse than using none. If software is not routinely updated, security flaws and technological incompatibilities cause a slew of issues.
Remember to keep the data updated on a regular basis. A properly updated program will generate accurate reports and financial accounts. Businesses should look for any missing transactions, category heads, or other changes and ensure that they are recorded in the program.
Update Payroll
Payroll is an essential component of any organisation. When preparing payroll, you must adhere to federal requirements. Payroll management can be difficult for organisations as they hire more staff.
Every month, update payroll reports and ensure that your superannuation and payroll responsibilities have been met. You must also include the following elements:
- Update new employee information
- Record and distribute pay stubs
- Pay your payroll taxes.
- Using Single Touch Payroll, report to the ATO.
Payroll is a requirement for any company that employs people. Using the correct tools and staying organized makes the work easier.
Review Inventory
Inventory management and tracking are critical for corporate success. You want the correct amount of inventory as a small business owner. Too much can cause storage problems or spoiling, while too little can result in a loss of sales.
Inventory management that is done on time reduces shortage and surplus difficulties. It can be beneficial to account for future stock requirements, which can then trigger a timely order procedure across the supply chain.
Invest in a useful inventory management solution that allows you to enter each item and any variations. The correct software generates realistic reports that estimate forthcoming stock requirements and examining them on a regular basis helps keep your organisation on track.
Check Accounts Receivable
Customer bills that have not yet been paid are classified as aged accounts receivables. To encourage timely payment, send reminders to your accounts receivables regarding past-due invoices. When reviewing these invoices, keep an eye out for missing invoices or double charges and take appropriate corrective action.
The number of old receivables present at any given moment can be a sign of financial health, and late payments can disrupt a small business’s cash flow. If a debtor defaults, you should reconsider doing business with that company. To maintain future cash flows, review dated receivables periodically and utilize them to pick who you do business with.
Conclusion
Using an accounting checklist might help your financial procedures run more smoothly. It adds a shield of security and ensures recheck of everything important.
If you are still confused, you might employ a bookkeeping service to help guide you and give a worry-free bookkeeping experience so you can focus on your primary business goals.
At Remote Books Online, we offer quality and precise Bookkeeping Services for businesses of all kinds and sizes. Our highly qualified and experienced professionals will bring you a hassle-free financial management experience and cater reliable and affordable services.
Why Choose Remote Books Online?
Your business is not bookkeeping, but ours is. Let us take care of your books for you. We have your needs covered with back bookkeeping, real-time bookkeeping, bookkeeping, and payroll services, and full-time or part-time bookkeepers, so you can get back to doing what you do best. Not only this, but we will also help you get your books up-to-date quickly and easily and ready for taxes, loans, or other transactions, for a clear picture of your business’s financial situation.
Dedicated Bookkeepers: You will be assigned a dedicated bookkeeper and meet with one of our lead accountants. (All of our dedicated lead accountants have at minimum a four-year accounting degree, and many are CPAs.)
Automated Systems: Our automated and secure web service will download your statements every month and send them to your dedicated lead bookkeeper. The bookkeeper imports the bank statements into your QuickBooks Online account or QuickBooks Desktop account, categorizing monthly transactions and preparing the necessary financial statements.
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Tax-Ready Financials: Remote Books Online completes your bookkeeping and financial statements for filing taxes.
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Try Remote Books Online for FREE!
Remote Books Online provides the first month of bookkeeping services for free for your books and will do documentation of all transactions and essential journal entries. You can learn exactly how we relieve you of the stress and aggravation of bookkeeping by taking advantage of this free consultation. We wish to establish the foundation of a long-term relationship by giving you the opportunity to personally experience and assess our bookkeeping service and procedure.
Get the qualified bookkeeping assistance you require for your business. Speak with a representative to obtain an estimate and schedule a meeting with a Certified QuickBooks Pro Advisor to review your financial records.