Managing the finances of your business does not have to feel like pulling teeth. A well planned budget, good record keeping, and a timeline for accounting functions can make end of the year tax preparation easy and painless.
One of the first things to do is break down your finances into daily, weekly, monthly, quarterly, and annual tasks.
Daily Accounting Tasks
- Check cash position and liquidity
Weekly Accounting Tasks
- Record transactions
- Review projected revenues
- Document and file receipts
- Pay vendors, sign checks
- Prepare and send invoices
- Review unpaid bills
Monthly Accounting Tasks
- Balance business checkbook
- Check month end balance sheet against prior period
- Analyze inventory
- Review aged receivables
- Process payroll and approve payments
- Review actual profit and loss vs. prior years and budget
Quarterly Accounting Tasks
- Prepare/review annual profit and loss estimate
- Review sales tax and make quarterly payments
- Calculate estimated income tax and may payment
- Review quarterly payroll and make payments
Annual Accounting Tasks
- Review past-due receivables
- Review inventory
- Fill out IRS Forms including W-2 and 1099-MISC
- Review and approve full year finance reports and tax returns
Taking small steps throughout the year to record and review your businesses finances can make a huge difference in the long run. Good record keeping will not only make filing much smoother, but you will know what to expect come tax time.
For more information, or if you find yourself struggling with your business finances and need help contact Person CPA Group Today!