A Sensible Accounting Checklist for Small Businesses - Part 1

LDG Accounting Services • September 22, 2022

When Should I do This?

“When have I last looked at this?” is a question every small business owner has had to ask themselves frequently. Whether you are the CEO, CFO and head of marketing, it’s easy to lose track of checking monthly reports or skipping a step in a process. Unfortunately, it takes just a few oversights with your books before you can have a real hassle on your hands. Today, we are going to look at a sensible checklist for small businesses that will keep you organized regarding the financial side of your company. Breaking it down, we start with things you should be looking at more often (at least weekly) to those that may be less frequent but can be time sensitive.

Daily Accounting Tasks

There is only one task that all accounting experts say business owners need to complete everyday: check your cash position! I normally do this as I’m finishing up my first cup of coffee because the banks make is so easy (with apps), but I actually have my balance emailed to me each day. Then consider how much are you expecting in and out today? Don’t just glance at the numbers, also look through your transactions to see if you spot any major discrepancies or surprises. It may only take 5-10 minutes but checking these numbers as you start your workday means you know exactly where your business is financially.

Depending on your type of business, you may also have to reconcile cash and receipts daily as well. You want to make sure you are not short and if there are recurring problems, figure out what is going on.

Weekly Accounting Tasks

There are more tasks that you will want to complete weekly. First, record your transactions. This can be done through accounting programs such as QuickBooks. Keeping all transactions coded correctly will help you spot unpaid invoices as well as track which products are making you the most money. Other weekly tasks include documenting/filing receipts reviewing unpaid vendor bills, check employee timesheets, and review project cash flow. The final task however is to prepare and send out your invoices. Many business owners wait until the billing cycle ends or even month end. This means that you must wait even longer for YOUR money! In addition to getting paid faster, you are more likely to catch errors and have quick responses for customers regarding issues if the transactions fresh in their minds.

Handling Accounting Tasks Is Important

Handling accounting tasks regularly in a timely manner is important. Not all small business owners have the time or support team to keep up with these necessary tasks. If you need assistance creating and maintaining accounting checklists for your business, the LDG Accounting Services would be happy to help. Contact us today to discuss your accounting needs. Here is a link to part 2 of this series.