Small Business Accounting Good Practice Checklist
Part of any organized business includes a standard set of tasks that must be completed on a daily, weekly and monthly basis. To make the job of management easier, it is a best business practice to have an established list of tasks per department and all the way down to the position level. Use these key monthly accounting tasks to help keep your small businesses on track.
How often should this be used?
Monthly.
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Small Business Accounting Good Practice
Monthly Accounting Tasks
Accounts Payable
At the end of the month, review a list of accounts payable.
These are items and services purchased but not yet paid for.
Accounts payable typically include short-term debts or payments owed to suppliers and vendors who offer services to businesses on credit.
Close out the month by paying these bills and recording payment in the business's accounting software program or general ledger.
Accounts Receivable
Accounts receivables are monies owed to the business from sales or services rendered to customers.
At month's end, prepare a chart or list of clients who have an outstanding balanced owed to the business.
Record all payments, generate statements and initiate collection efforts with customers who are late.
Balance your business checkbook
Analyze inventory status
Inventory items are raw materials that can be sold for cash.
Manage inventory each month to determine which business materials should be reduced and which materials should be increased.
If an inventory item moves slowly, remove or decrease stock of the item.
If a particular material moves quickly, replenish the inventory item more regularly to keep pace with the product's demand.
Process or review payroll and approve tax payments
Small businesses must keep thorough payroll records that include the hours worked, wages earned, deductions and net pay of each employee.
Conduct a monthly review of payroll records and cross check for any discrepancies or errors.
Report federal and state payroll taxes withheld from the employee's wages along with taxes that are the business's responsibility such as federal unemployment tax.
Ensure all employee declarations and log books are up to date
Expense reimbursements processed
Reports
Profit and loss statement
Balance sheet
Cash flow statement
Review
Actual performance against budget
Update cashflow forecast against actuals
We help you and your business
Make ChecklistsItemize your repeatable tasks once - perform them many times.
Document ProcessesProvide detailed documentation alongside tasks.
