Small business owners are faced with a lot of challenges every day, one of which is ensuring that their bookkeeping is accurate and complete. With that said, the folks here at Tax Alternatives want to share this important bookkeeping checklist with our clients and offer some insight to those important must do tasks.
SOME IMPORTANT STEPS TO TAKE
It is important that you take appropriate time to review invoices received, pay them in a timely fashion and always record any and all payments made. Without taking this initial step and ensuring its accuracy and completion each month, you increase the risk of mistakes in all your bookkeeping tasks moving forward.
- Customer invoices – Just as you would record any invoices that you send out to clients, you want to be sure to document all client payments as soon as those payments are received. This will help to make bank reconciliations and other bookkeeping account reviews much easier. It will also help you to keep track of all payments received and know which clients are up to date and which still have outstanding invoices to be paid.
- Vendor invoices – It is every bit as important for you to keep a close watch on any invoices you have sent along to vendors as well. Review all your vendor accounts and invoices routinely to ensure all payments and accounts are up to date. Always confirm that the products you have purchased has been received before sending along payments to outside vendors. Once those payments are made, be sure to record them all.
- Bank reconciliations – Be sure to reconcile your bank accounts and all your credit card statements at the end of every month. Monthly reconciliations will help to identify any mistakes and allow for proper amendments in a timely fashion. Review credit cards and flag any suspicious purchases or any double charges so that you can reach out and resolve the issues at each month’s end.
- Sales tax – Be sure to calculate and file all required sales taxes. You are responsible for not only the calculation but the collection and payment of all applicable sales taxes. Performing monthly calculations will help to expedite the quarterly tax filing process easier and quicker.
- Review and compare all monthly income statements – At the end of each month make it a point to review all your income statements as well as any profit and loss statements to your actual budget. This will help you to identify what your business has actually spent and earned throughout each month.
- Balance sheet – At the close of every month review your balance sheet and compare it to the previous month to be aware of how you are managing your assets and liabilities. Be sure to identify any peculiar changes, including drastic income increases or decreases.
REACH OUT TO OUR TRUSTED PROFESSIONALS
For some small business owners, bookkeeping can be quite a challenging task. If you find this bookkeeping checklist to be complicated or you find you haven’t enough time each month to focus on it, then surely you have come to the right place. Whether you are in need of assistance with your weekly, monthly, quarterly or annual bookkeeping tasks, we are the team for you. Here at Tax Alternatives, Inc. our Christian based company and dedicated team provides cost-effective, accurate and efficient bookkeeping services for small businesses like you. To schedule your free consultation, reach out to one of our friendly staff members today. We look forward to serving you and to providing you with the highest quality bookkeeping services this side of Brentwood!