It could also save you from problems related to your taxes and the IRS. Depending on your state, you may also be required to pay quarterly sales taxes. Here are some of the most common places to keep your bookkeeping checklist…
There is nothing better than checking off tasks on your list as they get completed keeping you organized each month. See why over 7,000 accountants and bookkeepers use jetpack workflow. Check your inventory status on a month-to-month basis to avoid being caught off guard by a shortage in supplies. If you’re in a peak period or just completed one, you might want to review your inventory more often to ensure things go smoothly. SynkBooks team will generate P&L and income statements, and will even fill out and file your tax return for you. Profit/Loss statements can be generated either quarterly or annually.
Review Your Inventory
If you’re not using cloud-based accounting software that automatically backs up your data, make sure to back up your financial data manually at least once a month. This will give you peace of mind that you won’t lose your data if you have a hardware failure or file corruption. Just as you reconcile your personal current account, you need to know that your cash business transaction entries are accurate each month and that you are working with the correct cash position. Reconciling your cash makes it easier to discover and correct any errors or omissions—either by you or by the bank—in time to correct them. The following checklist lays out a recommended timeline to take care of the accounting functions that will keep you attuned to the state of your business and streamline your tax preparation.
- It is essential to create schedules for these items to ensure the amount of each entry is accurate, such as a listing for fixed assets.
- And, if you take payments via credit card, they are documented as business revenue.
- Review the accounts payable aging report to see which bills need to be paid or scheduled to pay.
- It goes from “not started” contracts, to work-in-progress to completed.
Imagine having a clear checklist of the tasks you need to complete every month for your clients. Each task can be delegated or automated, saving time and money for your firm.
Task #19. Maintain Foreign Currency Account
This task keeps you from making the mistake of contacting customers who have already paid you for the same invoice. It also helps you keep track of the payments you’ve received. We’ll ask you a few short questions about your business and your very own dedicated bookkeeping team will handle all your bookkeeping and tax preparation needs for you! Within a few clicks, you’ll be able to start simplifying your small business bookkeeping task list in no time. Make sure the bills you’re paying for your business have been paid on time and are accurate with this report. Address any incorrect or uncategorized transactions to ensure your net income is reported accurately.
A profit and loss statement shows your bottom line and operating expenses, and it needs to be assessed every month. Filing your business taxes is one of the most important annual bookkeeping tasks, so make sure you file (and file on time and before any relevant tax due dates!) https://www.bookstime.com/ each year. The more frequently you send invoices, the more frequently you get paid—so instead of waiting until the end of the month to invoice your clients, send an invoice every week. Also make sure to include payment terms so your clients know when their payments are due.
Process or Review Payroll and Approve Tax Payments
You may choose to do this weekly or bi-weekly if cash flow is a particular concern for your business. At the end of each month, it’s useful to review monthly bookkeeping checklist your accounts receivable and track how much your customers owe you. Keeping on top of payroll helps ensure all your staff are paid on time.
The frequency of this task depends on how often you pay your employees. If you record incoming payments, you should also record outgoing payments. Writing checks is hard to do—goodbye, hard-earned money—but you’ve got to do it and stay on top of vendor payments. The processes are categorized by the area of the business (accounts receiveable, payroll etc.) and priority level to ensure that you focus on the right things at the right time. Entering inventory into your system the same day you receive it keeps your system current, giving you a more accurate look at your stock. If you don’t do this, your staff may lose sales by telling customers you’re out of stock when an item just hasn’t been entered into the system. Also, if your staff sells out of an item, reordering may be delayed if your system isn’t set up to allow negative inventory counts.