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There are some weekly accounting tasks that small business owners need to make sure get done to stay on top of their business’s financial health.
Running a small business involves wearing multiple hats, and one of the most critical roles is managing the finances effectively. Neglecting accounting tasks can lead to financial chaos and hinder the growth of your business. To maintain financial health and make informed decisions, small business owners should dedicate time each week to handle essential accounting tasks.
Review Cash Flow
Begin your week by reviewing your cash flow statement. Understand where your money is coming from and where it’s going. This will help you anticipate any upcoming cash shortages or surpluses, allowing you to make adjustments as needed.
Invoice Clients
Send out invoices for any completed work or products delivered during the week. Prompt invoicing improves cash flow and reduces the risk of late payments. Consider using accounting software with automated invoicing features to streamline this process.
Follow Up on Outstanding Payments
Chase up any overdue invoices promptly. Persistent follow-up can significantly reduce the risk of bad debts and ensure a healthy cash flow for your business.
Record Transactions
Record all financial transactions, including sales, expenses, and payments, in your accounting system. This ensures accurate financial records and provides insight into your business’s financial performance.
Reconcile Bank Accounts
Reconcile your bank accounts regularly to ensure that your records match the transactions reported by your bank. This helps identify any discrepancies or errors that need to be addressed.
Track Expenses
Keep track of your business expenses throughout the week. Categorize expenses properly to make tax filing easier and to gain insights into your spending patterns.
Review Budget vs. Actuals
Compare your actual expenses and revenues against your budget for the week. Analyzing these variances can help you identify areas where you overspent or opportunities to increase revenue.
Monitor Accounts Receivable and Payable
Stay on top of your accounts receivable to ensure timely payments from customers. Likewise, monitor accounts payable to avoid late payments to suppliers and maintain good relationships with them.
Prepare for Tax Obligations
Set aside funds for taxes and ensure that all necessary tax filings are up to date. Keep track of tax deadlines to avoid penalties or interest charges.
Evaluate Financial Goals
Take some time each week to review your financial goals and assess your progress. Adjust your strategies if necessary to stay on track towards achieving your objectives.
Review Financial Reports
Review key financial reports such as profit and loss statements, balance sheets, and cash flow forecasts. These reports provide valuable insights into your business’s financial health and can help you make informed decisions.
Plan for the Future
Use your weekly accounting sessions to plan for the future of your business. Identify areas for growth, investment opportunities, or potential cost-saving measures.
Trust the Professionals at the Harding Group
Unlike other accounting firms, The Harding Group, located in Annapolis, MD, will never charge you for consultations and strive for open communication with our clients.
Are you interested in business advising, tax preparation, bookkeeping and accounting, payroll services, training + support for QuickBooks, or retirement planning? We have the necessary expertise and years of proven results to help.
We gladly serve clients in Annapolis, Anne Arundel County, Baltimore, Severna Park, and Columbia. If you are ready to take the stress out of tax time, contact us online or give us a call at (410) 573-9991 for a free consultation. Follow us on Facebook, Twitter, YouTube, and LinkedIn for more tax tips.