Your company’s balance sheet is a snapshot of your assets and liabilities. The difference between the two lets you know how much equity you have in your enrolled agent ea definition small business. Comparing one date against another on your balance sheet – month over month, for example – will help you identify any dramatic ups and downs. This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business.

The accounts payable (AP) balance shows up on your company’s balance sheet for the period as a liability. That figure is simply a representation of any money your company owes to its suppliers and vendors. It’s essential to reconcile the AP ledger and ensure your figures are current and correct. This process helps capture errors in bank or credit card statements or ledger accounts.

#8: Review Forecasted Cash Flow

Financial statements are essential resources business owners rely on to assess the financial health of their operations. As your firm grows, having an organized workflow for the many client tasks you manage is vital. Without one, it’s easy to get stuck doing time-consuming work because you lack an efficient system.

Why you need a Monthly General Accounting Checklist Template

Ask your vendor to fill that order and send an invoice for the purchase order so you can move the money from your asset account into COGS (Cost of Goods Sold). Are the tasks in the Monthly General Accounting Checklist Template accurate? We created our Monthly General Accounting Checklist Template with equity definition feedback from bookkeepers like you.

It also enables you to understand your business’s cash situation and usage and catch any fraudulent activities before they get out of hand. In most states, you’re required to file sales tax returns and pay each month if you have a high volume of sales. Since laws vary between states, check with yours to determine what that volume of sales must be. And, of course, it’s always a good idea to consult with your accountant when it comes to taxes. The requirements of small business accounting come down to a handful of best practices and essential reports, which you can do manually or with accounting software.

After recording transactions, you’ll want to keep copies of your invoices and all receipts. While tossing receipts in a box might seem tempting, it leads to chaos at tax time. Review the payroll summary before payments are disbursed to avoid making corrections during the next payroll period. A payroll service provider can do all this to save you time and ensure accuracy at a reasonable cost. Managing your cash flow is critical, especially the first year of your business.

Nothing keeps an accounting firm more unified and productive than a clear set of repeatable tasks. Check your inventory status on a month-to-month basis to avoid being caught off guard by a shortage in supplies. If you’re in a peak period or just completed one, you might want to review your inventory more often to ensure things go smoothly. It automates time-consuming bookkeeping admin for thousands of self-employed people across the UK.

Review and pay quarterly payroll taxes

While accounting may not be what motivates you to go to work every day, it’s likely something you’ll encounter whether you do it yourself or outsource to an accounting firm. There are weekly, monthly, quarterly, and annual accounting tasks you need to complete to ensure your business’s success. Create a payroll file sorted by payroll date and a bank statement file sorted by month. Many accounting software systems let you scan paper receipts and avoid physical files altogether. Besides investing in useful accounting software, you can use a monthly bookkeeping checklist to ensure nothing falls through the cracks.

1. It’s important to have a system for creating and sending invoices to your clients.
2. On a monthly basis, there are a few key bookkeeping processes that need to be executed for your small business clients.
3. Learn more about Jetpack Workflow to discover how you can save regain control of client work, save hours of admin time, and make sure critical tasks are never missed again.
4. That includes both federal income tax and self-employment tax, which may or may not apply to your clients.

Deposit Cash and Check Payments

Each quarter, you should take a close look at your profit and loss statement to get a firm understanding of the financial condition of your small business. This evaluation should look at your profitability, profit spending habits, asset stability, and the difference between virtual fundraising event invitation revenue and expenses. The goal is to identify any trouble areas and make adjustments that will help the business be more profitable.

Other accounting services small businesses may use include bookkeeping, strategic finance, and tax accounting. Keep copies of all invoices sent, all cash receipts (cash, cheque, and credit card deposits), and all cash payments (cash, cheques, credit card statements, etc.). Welcome to your weekly accounting tasks, otherwise known as the land of invoicing, financial data management, and other business bank account fun. Monthly bookkeeping checklists should include action items on analyzing and resolving any financial discrepancies.