Maintaining good financial records is essential when it comes to keeping your small company solvent. Although you might hire an accountant to handle vital tasks like payroll or the filing of taxes, there are some accounting tasks that you should be doing on a regular basis.
Use the following schedule to help you stay on top of your small company's financial health in the future.
Daily Accounting Tasks
Taking the time to perform a few simple tasks each day will help ensure that your company's financial health is never placed in jeopardy due to errors or oversights. Here are two accounting tasks you need to be doing daily.
- Count the cash you have on hand. Knowing how much cash your company has available at any given time will help you identify any discrepencies in your tills or cash account. You can better identify poor spending habits or employee theft that could be placing your company at risk when you conduct a daily accounting of your company's cash.
- Review incoming and outgoing payments. It's important that you identify how much money your company has coming in and going out each day. This information will help you adjust your financial plan in order to ensure that your company's accounts remain in good standing.
Monthly Accounting Tasks
Working with an accountant to complete some important tasks each month will help you keep your company's financial health on track. Here are two tasks that your accountant can complete on a monthly basis to help you gain a better understanding of your company's financial status.
- Review month-end balance sheets. Going over your balance sheets with an accountant each month will ensure that you are able to identify any potential problems before they jeopardize your company. Outstanding customer accounts can be identified so that payment can be demanded in a timely manner.
- Compare profit and loss statements. If you want your company to experience steady growth, you need to be consistently becoming more profitable. At the end of each month, you should work with your accountant to compare your company's profit and loss statements with those from previous years. You will be able to see growth patterns and adjust your marketing and spending strategies accordingly to encourage growth in the future.
Working with your accountant to establish regularly-scheduled accounting tasks on a daily and monthly basis will benefit your company in the future. Taking the time for some basic accounting each day and month will help you identify opportunities for growth and investigate potential errors that could put your company's financial health at risk.
For more assistance and tips, contact certified public accounting firms in your area, like Carmines Robbins & Company PLC.Share