Small Business Accounting Daily Tasks
Small Business Accounting Daily Tasks
It’s important that when you have a small business, you maintain your accounts. Not doing so can get you in some serious problems with the IRS. Managing your business finances doesn’t have to be as painful as having a root canal done, however. There are small business accounting daily tasks that you can do to maintain your books without a lot of work at once.
Small Business Accounting Daily Tasks
1) Check Cash Position – The most important of all small business accounting daily tasks should check how much cash you have on hand. Cash is the foundation of your business, and you need it for everything from postage to gas, so you certainly can’t run out. Try to estimate how much you’ll be receive during the upcoming week, as well as estimate your expenditures. Doing this will help you stay on budget throughout the week and ensure that you don’t run out of cash for the most essential expenditures of your business.
2) Record transactions – The most important thing is to record everything! Keeping good records is essential to success in your small business accounting. You can either use an Excel spreadsheet or an accounting software like Quick Books or Quicken. There’s also other bookkeeping software programs that are free to use and will do similar functions to either one of those programs.
3) Document and file receipts – Keep all of your receipts – you never know when you might need them. Keep copies of all invoices sent and all payments received from clients. Split your receipts into files to keep them better organized.
4) Review unpaid invoices from vendors – Look at your invoice list and determine who has not paid yet and how far behind they are. Send your behind clients gentle reminders that payment is due. You should have an “unpaid invoices” file that you review daily, or close to daily.
5) Prepare and send invoices – You always want to be constantly sending out invoices as soon as the work is done. If you don’t send out invoices quickly, you’re leaving valuable money on the table. Be sure to include payment terms and any repercussions for late payments. You might want to consider payment incentives to get people to pay early.
6) Pay Vendors and Sign Checks – You should make sure that you pay vendors as soon as possible to maintain a good relationship with them. Sign checks for payroll and vendors daily to avoid any lapse in payment.
Do these small business accounting daily tasks and you should have your business running like a well-oiled machine. If you need help fueling that machine, call Paula’s Bookkeeping Solutions!
