Accounting tasks are things every business owner has to deal with. These tasks, however, can become daunting when they are left until the last minute to be taken care of. No one wants to have a large pile of receipts staring back at them at the end of the month or when they need to presents their books for a transaction. Even with accounting software there to ease the workload, there are some tasks you can take on to make life easier. Accounting largely affects the overall health of the business. it would be wise to give daily, weekly or quarterly attention to these tasks.
Record Transactions and Expenses
This is a very essential part of your daily business dealings. Recording your transactions and expenses can help you have a better hold of your enterprise. It can be very easy to put this off for a later time, but it can be damaging in the long run. The best thing is to take down all the expenses and transactions at the end of every day and taking regular notes so you can monitor frequency, especially that of expenditure.
Reconcile Receipts & Payments Regularly
More than any of your accounting tasks, reconciling incoming payments can give you a better grasp of what your balances look like on a daily basis. Reconciliation is the process of matching transactions that you have made with your bank statements and balances. If you are making use of accounting software, it will prompt you as to what segments to fill in as it will merge transactions with your bank accounts. This gives you a good view of the exactly what segment contributes what, you will have columns for your customers, vendors and so on.
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Run Weekly Cash Flow Checks
Checking your cash flow can be very healthy for your business. Running cash flow checks as part of your accounting activities can help you take care of problems faster than you would normally. Your cash flow takes a broad view of the money coming into your business and the money going out. For example, chasing down late payments can become easier when you notice that your balance from previous weeks exceeds what you currently have.
Send Out Invoices as Quickly a Posible
You should make it a point of action to prepare and send your invoices as soon as possible. This can speed up the process of getting paid. This is a very healthy habit to pick up as it directly affects your cash flow and the smooth running of your business.
Compare Your Profit & Loss With Your Monthly Budget
To ensure you have a good grasp of your bottom line, you should try to compare your profit & loss segments with your initial budget for the month. You do not want a situation where your expenditure goes way out of your budget, and it is very easy to lose track of what you are spending if you don’t check in with your budget. This becomes even more important when you have an associate or employee in charge or allowed to spend company funds. You can be on top of any extra spending within a very short time so as to take care of it.
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Prepare & Submit Your Taxes on TIme
When you are working for a big company, you only get paid when your tax has been deducted. Making the transition to actually filing taxes by yourself is never easy. Putting off paying your taxes is never a good thing because you never know when you might get audited. You certainly do not want to incur fines in large amounts, so taking care of your taxes on time is one of the accounting tasks you can not joke around with. To help you along or take care of your taxes altogether, it’s advisable to get a professional.