Many small business owners who have just opened their business doors often feel not only inexperienced but entirely overwhelmed with bookkeeping tasks and responsibilities. Though they are entirely aware of the importance of selling their goods or services, growing their client base, and enhancing revenues, bookkeeping tasks can often leave them in the dark. That’s where the professionals here at Tax Alternatives come in. Our highly skilled and experienced team coupled with our top-of-the-line bookkeeping services can certainly help small business owners get their books on track.
Most, if not all business owners, are inexperienced when it comes to accounting and bookkeeping responsibilities, but no need to fret, our team is here to help. There are a number of basics that need to be created that are tailored to your specific business and we want to share some of them with you.
THE INVOICE PROCESS FOR BOTH CUSTOMERS AND VENDORS
It is important that you master this simple task and ensure its completion and accuracy month after month. If your monthly invoice process for both customers and vendors is inaccurate, it will continue to be moving forward.
- Customer Invoices – Be sure to document all invoices sent out to customers as well as any payments received. Being diligent in this simple process helps to avoid false communications with clients about presumed payments that are late.
- Vendor Invoices – It is also important that you keep accurate records of your own invoices owed to vendors. Review vendor invoices regularly to ensure that you have received products or services you are being billed for and that you have made all your required payments.
BE SURE TO COMPLETE ALL BANK RECONCILIATIONS TIMELY
To know the exact status of your cashflow, it is important to reconcile your bank accounts monthly as well as your credit cards. Once you are sure of the accuracy of your accounts then you are able to continue on with your monthly bookkeeping tasks.
GIVE FOCUS TO AGED ACCOUNTS REPORTS BOTH ACCOUNTS PAYABLE AND RECEIVABLE
Once your bank accounts are all reconciled its time to focus on your aged accounts reporting. Be sure to review your accounts payable report to ensure that all bills have been entered properly throughout the month. Be sure that all the numbers accurately reflect your business net income as well as all the existing liabilities. Then move on to your accounts receivable reports. Your AR reports identify clients who have paid their bills. It is also a tool that identifies duplicate invoices or any invoicing errors. You want to be sure these numbers are correct to ensure that you do not overstate or over calculate your business revenues.
SEND OUT MONTHLY INVOICES
You definitely want to stay up to date with your customer invoices. Put a monthly protocol in place for sending out customer invoices and tracking those invoices that are outstanding. Once invoices are sent out, it is imperative that you make a record of your invoice mailings. This can be easily done on a spreadsheet and will help you to stay on top of outstanding invoices. Whenever you notice a past due invoice, be sure to send out a friendly reminder.
REVIEW ALL YOUR FINANCIAL REPORTS MONTHLY
It is important to compare current income statements to the previous month so you are aware of your business spending and earnings during each month. This will offer you some insight on how you may want to manage your liabilities and assets going forward.
LET OUR PROFESSIONALS HELP
Bookkeeping can be somewhat challenging and difficult but really does not have to be altogether that complicated. When you rely upon the pros here at Tax Alternatives, rest assured our team will provide the highest quality services you need month after month. We provide cost-effective, accurate, and efficient bookkeeping services for all our valued clients. If bookkeeping is not for you and you would like to learn more about our top-rated bookkeeping, accounting, payroll, and other services, then be sure to reach out to one of our team today! We look forward to serving you month after month, year after year!