Accounting Tasks Spreadsheet Free Templates and Checklists

Before we jump into the essential bookkeeping checklist for small business owners, let’s quickly touch on why it’s so important to have a bookkeeping checklist in the first place. As a small business owner, there are few tasks that are more important to successfully manage your business than bookkeeping. Monthly closings help maintain accurate records and catch issues early, making the year-end closing process less daunting. Another mistake to avoid is not writing off bad debts or obsolete stock. This can overstate your client’s assets and misrepresent their financial health, leading to inaccurate profit margins.

Generate End-Of-Month Reports

It is where future projections, built from the accountancy team’s hard work, can be included. There’s also the option of including a letter from the CEO and other details about changing markets, products, and services. If you’re starting off in business, you might not know how much tax you have to pay or what you’re paying that tax for. Mistakes are easy to make and if left unnoticed can be very hard to correct – with huge consequences.

Follow up if needed to collect payment and be sure you sent the invoices to the appropriate customers. This task gives you real-time visibility into how much money is coming in and going out of the business, especially when combined with your cash reconciliation data. Doing this daily lets you spot any possible issues early and resolve them promptly. As your firm grows, having an organized workflow for the many client tasks you manage is vital. Without one, it’s easy to get stuck doing time-consuming work because you lack an efficient system.

Q3. What should be included in year-end accounts?

1. As per a recent study, 85% of C-suite executives say poor communication with their customers has led to nonpayment.
2. Note that you’ll need to pay some payroll taxes, such as FICA taxes, to the IRS monthly or sem-weekly, depending on the amount you withhold.
3. Finally, you’ll need to file your annual tax returns for yourself and your business.

The requirements of small business accounting come down to a handful of best practices and essential reports, which you can do manually or with accounting software. Other accounting services small businesses may use include bookkeeping, strategic finance, and tax accounting. Annual reports include an overview of business activity during the year, including cash flow reports, income statements, and balance sheets.

Check each of these tasks off of your bookkeeping checklist

This is money which you will have, and this process helps you operate as if it is there in your bank. An expense management software can be invaluable here, as it keeps all your financial data organized and easily accessible. It can also categorize expenses according to tax codes, making it easier to claim deductions and reduce your tax liability. Regularly analyzing and adjusting your cash flow projections allows you to anticipate shortfalls and plan accordingly. Use your weekly financial data to update projections, considering upcoming expenses and expected revenues. Weekly trips are a decent frequency to help you keep your cash flow healthy and records updated with any paper checks and cash payments.

Notify your client if any invoices remain unpaid after an extended period. This way, they can take further action, such as contacting a collection agency. Some bills may be on auto-pay, but you should still verify these transactions went through and that the payment method hasn’t expired. This task also allows you to monitor labor costs so your clients know whether they’re within budget or need to tweak their scheduling.

However, failing to record these expenses can accumulate over time, causing inaccurate year-end financial statements. Yes, you’ll need to determine how you want to manage your books, such as the do-it-yourself route, such as Excel spreadsheets, or use accounting software like QuickBooks. Alternatively, you can outsource chapter 19 audit of acquisition and payment cycle your bookkeeping or hire a part-time bookkeeper. Finally, you’ll need to file your annual tax returns for yourself and your business.

Users can receive necessary documents and information promptly from clients. They can also set up automated reminders to follow up with clients at intervals until they provide the requested documents. This will help identify errors and certify your bookkeeping is accurate and up to date. Also, if you pay independent contractors $600 or more during the year, you’ll need to send each one a 1099-NEC form, as well as copies to the IRS. The deadline for sending these forms to employees and contractors is January 31. If you check regularly (and compare to prior months’ numbers), it’s easier to make adjustments, so you are neither short nor overloaded.