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Monthly accounting tasks involve looking over reports and getting an idea of your business’s current overall performance.
We’ve discussed daily and weekly accounting tasks for small business owners before, and now it’s time to talk about monthly accounting tasks that small business owners need to stay on top of. Regularly managing your bookkeeping and accounting will help you catch problems early and get a better handle on what is and isn’t working for your business.
Pay Vendors
Paying your vendors and suppliers is something you should do on a weekly basis, if possible. If you get busy and don’t get to this weekly, make sure it’s handled at the end of the month. Paying your vendors and suppliers in a timely manner develops a strong working relationship and strengthens your reputation. If any of your vendors offer early payment discounts, go out of your way to pay those weekly. The rest can be handled at the end of the month if you’re low on time.
Send Out Reminders for Unpaid Receivables
The end of the month is a time to remind slow payers that their bills are overdue and awaiting payment. Send an email with an invoice or give them a phone call to make an attempt at getting those receivables paid off. Any receivables that haven’t been paid from the previous month can go into legal, be sent to a debt collection agency, or simply be written off as a lost expense.
Check Statements & Reconciliation Reports
The end of the month is when you should perform a deep dive on your monthly statements from your bank and credit card company. In addition, do a thorough check of your reconciliation reports. This is a great way to monitor for fraud if you have a bookkeeper or accountant and make sure reconciliation reports aren’t being filed that reflect large discrepancies.
Review Financial Statements with Your Accountant
If you have a bookkeeper or accountant, one of your monthly accounting tasks is going over your profits and losses report, balance sheet, and cash flow statement. It’s a great idea to have a bookkeeper or accountant if you don’t have time to manage these tasks yourself, or if you’re not confident you know how to handle that side of the business alone. However, it’s important to make sure you’re monitoring those records and talking with your accountant if there’s anything you find alarming or confusing about your business statements and expenses.
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.