Bookkeeping is crucial for ensuring effective financial administration in enterprises and organisations. It enables business owners to understand the financial state of their organisation and make wise choices. Also, it assists in the examination of the company’s cash flow and financial structure. You can keep track of all the processes and ensure that your bookkeeping is done correctly by maintaining an accounting checklist. But how should the things on the checklist be decided? What else is necessary to list? To help you get started in the right manner, this article will answer all of your worries and provide you with a quick bookkeeping checklist.
- Revisit the Cash Position
- Updating your Accounting Program
- Record Sales and Expenditures
- Review Customer and Vendor Invoices
- Reconcile Your Records
- Sales Tax Returns
- Review Your Inventory
- Record Credit Cards Transactions
- Review Debt Accounts
- Review WIP Reports
Revisit the Cash Position
If a corporation makes enough money, it may be able to meet its continuous demands without incurring debt. The business could have more influence over its operations in this way. If a firm needs to take on debt to pay its bills, it is possible that the debtors will influence how the company is run. It may be more challenging for management to implement its strategy plan for the company if they hold opinions that diverge from its own. Without enough money to meet its demands, a firm will find it difficult to perform routine operations like paying suppliers, buying raw materials, and paying its employees, let alone making investments.
Updating your Accounting Program
An organization’s service offerings matter because they have an impact on the revenue it brings in. The use of out-of-date software may cause sluggish services and the loss of important customers. Consumer loss is the root reason of low sales. By upgrading their various accounting software through an internal audit, such organisations can grow. By updating to the most recent software, a firm can boost the entry of its account information and stock availability. Also, updated software boosts earnings by increasing sales. One of the best methods to ensure that a business achieves its stated goals and objectives is through improved customer service. Customer service encourages company growth and increases brand reputation. A quality accounting programme will contribute to a positive brand perception and excellent brand recall.
Record Sales and Expenditures
You can better understand your finances by keeping track of sales and business expenses. It’s critical that you understand every aspect of your company’s finances as the business owner. Transaction recording might be quite helpful in this regard. Also, you can examine how your company is spending its money, what is bringing in the most revenue, potential improvement areas, etc. All of this knowledge will assist you in making better selections for your long-term future. Also, you will have control over your finances and be able to change the cash flow to suit your needs. Also, it will provide an added degree of security for the company’s financial flow because fraud will be avoided through surveillance.
Review Customer and Vendor Invoices
The administration of invoices is a crucial aspect of company financial management. An important record that acts as evidence of a transaction between a company and its clients or suppliers is the invoice. In addition to having legal significance, invoices give organisations vital financial data. Business owners can monitor their cash flow and expenses by keeping track of their invoices. Companies can use this data to their advantage when choosing when to buy something, how much to pay a vendor, or whether to give customers discounts. Businesses may ensure that they are getting paid on time and that they are paying their vendors on time by tracking invoices.
Reconcile Your Records
Businesses can find and fix any flaws or anomalies in their financial records by comparing the bank statement with the company’s accounting records. This helps to ensure the correctness of the financial statements while also reducing the possibility of fraud and other financial misconduct. The usage of bank reconciliation statements by businesses is crucial for ensuring the correctness of their financial records and lowering the risk of fraud or financial abuse. Businesses may keep track of their financial activity and see any problems or concerns as soon as they appear by reconciling the bank statement each month. This encourages effective transaction recording and maintains accuracy of the books.
Sales Tax Returns
Businesses can gain from the monthly preparation and recording of sales taxes in a number of ways. Making sure that sales tax is properly reported and collected can be helpful in the beginning. Businesses can detect any abnormalities or errors in their sales tax estimates and take immediate corrective action by keeping accurate records. By doing this, it is less likely that you will be hit with penalties or fines for breaking the law on taxes. Businesses can better manage their cash flow by filing their sales taxes on a regular basis. Businesses can lessen their chance of being required to pay a sizable lump payment at the end of the quarter or year by saving away the proper amount of sales tax each month.
Review Your Inventory
A business owner can gain from correctly managing inventory in a number of ways. You’ll notice that the inventory orders are more accurate now. The organisation of your warehouses, where all of your inventories are kept, will increase warehouse production. You’ll ultimately save a tonne of time and money by doing this. Effective inventory control and management prevent customers from receiving incorrect or damaged goods. This improves the user experience, provides protection against issues like refunds, and promotes repeat business. All of this is only possible if you regularly evaluate your company’s inventory in order to keep an eye on it.
Record Credit Cards Transactions
When personal and company activities are kept separate, it is simpler to maintain accurate records of business activity and avoid confusion or inaccuracies in financial reporting. Separating business and personal activities makes it easier to keep track of and reconcile expenses, file taxes, and assess financial success. Mixing personal and business expenses can result in fines and interest charges in addition to making it more challenging to deduct business expenses from income on tax returns. To track credit card transactions independently, businesses might open a second credit card account that is only used for business expenses. You’ll be able to trace and reconcile any credit card purchases made for personal usage versus corporate use thanks to this.
Review Debt Accounts
Accounts payable and receivable reports should be periodically examined in order to effectively manage a company’s finances. Owners of businesses are better able to manage their cash flow when they are aware of their current financial status. By reviewing accounts payable reports, business owners may make sure they are aware of any past-due bills or other commitments. This allows customers to prioritise their spending and save late payment fines. By analysing accounts receivable data, business owners can also keep track of any past-due invoices from clients. They can now investigate past-due payments more easily and take the appropriate actions to recoup the money owed.
Review WIP Reports
If you have a current, accurate Work-In-Progress (WIP) report, you can manage your projects more successfully. This is because you’ll need this data to complete projects on time and on budget. Making wiser decisions on a daily basis is possible when you are proactive rather than reactive. To ensure that your jobs stay on schedule, use the WIP report functionality to compare the resources you have with how long it will take to complete your open tasks.
This concludes the Monthly Bookkeeping Checklist. We hope you will use these instructions and do your best to put them into practise. Although each company operates in its own manner, these are some standard practises that anyone can use. We hope these can help you reduce your workload. Good luck with your bookkeeping!