Top 10 Bookkeeping Checklist Items For The Month Of July 2023

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To ensure efficient financial administration in businesses and organisations, bookkeeping is essential. It enables business owners to comprehend their company’s financial situation and make informed plans. Also, it aids in the analysis of the company’s cash flow and the way its finances are set up. Maintaining an accounting checklist can help you keep track of all the activities and guarantee that your bookkeeping is done correctly. But how should the checklist’s items be chosen? What else needs to be listed? This article will address all of your concerns and give you a brief bookkeeping checklist so you can get going in the correct direction.

Revisit the Cash Position

A company may take care of its ongoing needs and prevent taking on debt if it generates enough income. In this manner, the company may exert more control over its operations. It is conceivable that a company’s debtors will have a role in how the company is operated if it must take on debt to cover its expenses. If they hold views that differ from those of management, that can make it more difficult for management to carry out its strategic plan for the company. A business will struggle to carry out ordinary tasks like paying suppliers, purchasing raw materials, and paying its staff, much alone making investments, without producing enough revenue to cover its needs. Hence, it becomes ultimately important to keep a check on the cash position of the business and ensure it is not declining and is enough to meet needs.

Updating your Accounting Program

The type of services provided by an organization is important because they affect the profits it generates. Using outdated software could result in sluggish services and the loss of significant consumers. Low sales are caused by consumer loss. Such businesses can develop by upgrading their various accounting software through an internal examination. An organization can increase the entry of its account information and stock availability by upgrading to the most recent software. Moreover, upgraded software increases sales, which increases profits. Improved customer service is one of the finest ways to guarantee that a company meets its stated goals and objectives. Customer service promotes business expansion and builds brand recognition. A good accounting software will help in ensuring a good brand image and high brand recall rates in the mindset of consumers.

Record Sales and Expenditures

Recording of sales and expenditures incurred in the business helps you to understand your finances better. As the owner of the business, it is important that you know your firm’s finances in and out. Recording transactions can help a lot with that. You can also analyze where your business money is being spent, what is generating highest sales, areas to improve, etc. All this information will help out to make better decisions for the long run of your future. You will also have a control over your money and can modify the cashflow as per your requirements. It will also add an extra layer of protection to the cashflow of business as monitoring it will prevent the occurrence of frauds.

Review Customer and Vendor Invoices

An essential component of firm finance management is invoice management. The invoice is a crucial document that serves as proof of a transaction between a firm and its customers or suppliers. Legally significant, invoices also provide organisations with useful financial information. By keeping track of their invoices, business owners can keep tabs on their cash flow and expenditures. Businesses can utilise this information to help them make informed financial decisions whether deciding when to acquire something, bargain with a vendor, or offer discounts to clients. By tracking invoices, businesses can also make sure that they are getting paid on time and that they are paying their vendors on time.

Reconcile Your Records

By comparing the bank statement with the company’s accounting records, businesses can identify and correct any errors or abnormalities in their financial records. This lowers the likelihood of fraud and other financial mismanagement while also assisting in ensuring the accuracy of the financial accounts. Bank reconciliation statements are an essential tool for businesses to utilise in assuring the accuracy of their financial records and reducing the possibility of fraud or financial misuse. By reconciling the bank statement every month, businesses may maintain track of their financial activity and identify any issues or concerns as soon as they arise. This fosters efficient transaction recording and keeps the books correct.

Sales Tax Returns

The preparation and recording of sales taxes on a monthly basis can benefit businesses in a variety of ways. First, it can help to make sure that sales tax is duly reported and collected. By maintaining precise records, businesses can identify any irregularities or mistakes in their sales tax calculations and promptly address them. By doing this, the likelihood of incurring penalties or fines for breaking tax regulations can be reduced. By preparing their sales taxes on a monthly basis, businesses can better manage their cash flow. By setting aside the appropriate amount of sales tax each month, businesses can reduce their risk of being obliged to pay a huge lump sum at the end of the quarter or year. This helps improve financial planning and reduce cash flow risk.

Review Your Inventory

There are several benefits a business owner can enjoy through managing inventory properly. You will notice improved accuracy in the orders of the inventory. Your warehouses, where all the inventories are stored will be more organized, which will also enhance the productivity rate at warehouse. This will ultimately save you a lot of time and money. A consumer receiving wrong or damaged items is prevented by effective inventory management and control. This enhances the user experience, safeguards against problems like refunds, and encourages more customers to come back. All this can be possible only when you keep an eye on the inventory of your firm, by reviewing it on a monthly basis.

Record Credit Cards Transactions

It is easier to keep accurate records of business activity and prevent confusion or errors in financial reporting when personal and business transactions are kept apart. It is simpler to maintain track of and reconcile costs, submit taxes, and evaluate financial success when company and personal transactions are kept apart. In addition to making it more difficult to claim company expenses as a deduction on tax returns, mixing personal and business spending can result in penalties and interest fees. Businesses may open a second credit card account that is only used for business spending in order to track credit card transactions independently. This will enable you to distinguish between any credit card purchases made for business and personal use, as well as track and reconcile them independently.

Review Debt Accounts

To efficiently manage a company’s finances, accounts payable and receivable reports should be routinely reviewed. Business owners that are aware of their current financial situation are better able to control their cash flow. Business owners can make sure they are aware of any past-due payments or other obligations by looking over accounts payable reports. Customers can prioritise their expenditures and steer clear of late payment fees thanks to this. Also, business owners can maintain track of any past-due invoices from customers by analysing accounts receivable data. It is now easier for them to look into past-due payments and take the necessary steps to recover the money owing.

Review WIP Reports

You can manage your jobs more effectively if you have an accurate, up-to-date Work-In-Progress (WIP) report, as this information is necessary to finish jobs on schedule and within budget. Being proactive rather than reactive enables you to make daily decisions that are wiser. You can compare the resources you have with the amount of time needed to finish your open tasks using the WIP report functionality to make sure your jobs stay on schedule.

With this, monthly bookkeeping checklist comes to an end. We hope you found this useful and that it will help you manage your finances better. Happy bookkeeping!

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