Running a business means handling numerous things at once. Operations, clients, deadlines, and your business books all demand attention. However, when you fail to keep track of your business books, it can lead to late tax lodgments, missed bills, or cash flow issues. That’s where a bookkeeping checklist comes in.
A well-organised bookkeeping checklist helps you reduce errors, stay organised, and keep your business books up to date. This blog will shed light on essential bookkeeping tasks to focus on to keep your business running smoothly.
Essential Bookkeeping Checklist
Certain bookkeeping processes must be done weekly or monthly to maintain accurate information and meet reporting obligations. A reliable bookkeeping checklist should include the following tasks:
- Accurate record keeping
To keep the business books up to date, it’s essential to record and categorise financial transaction. When these tasks are done on time, you will have a clear picture of cash flow of your business. Maintaining well-organised financial records also takes the burden off during tax season. With everything organised, the chances of mistakes are reduced. - Check your accounts receivable
Unpaid invoices can affect your business. That’s why it’s crucial to stay on top of your accounts receivable. If you review your receivables, you can monitor what’s overdue and understand how long payments have been pending. It also gives you insight into possible cash flow gaps and helps you manage risk easily. When you have clarity regarding income payments, you can better make business decisions. - Manage accounts payable
It’s essential to manage accounts payable to get various benefits. It can help you avoid late fees by ensuring accurate and timely bill payments. You can better maintain strong relationships with suppliers and vendors through reliable payments. You can also protect your cash flow by keeping track of business expenses. You can have a better view of upcoming obligations and due dates to avoid surprises. - Reconcile payroll
Payroll reconciliation will help you ensure that your staff is paid correctly and on time, and that payroll taxes are reported accurately. By frequently checking payroll data, you can easily avoid mistakes like underpayments, overpayments, and tax miscalculations. This can also help you with better budgeting, compliance, and planning, while also helping to prevent penalties and fines. - Prepare financial statements
By preparing accurate financial statements, you can get a clear picture of your company’s financial condition. Generally, this includes primary reports like balance sheets, income statements, and cash flow statements. These reports can help you know the financial status of your company, keep track of business performance, and make the right business decisions. - Check deadlines and compliance
Meeting tax obligations and lodgment requirements on time can help you maintain a good relationship with regulatory authorities and reduce the risk of fines. Staying compliant also supports the financial resilience of the business. To stay organised, it’s essential to create a compliance calendar that highlights all important tax payment and lodgment dates relevant to your business. You can also reach out to Trusted Tax Associates to stay compliant and meet tax obligations. - Review financial thoroughly
Don’t forget to review your financials thoroughly to catch errors early and ensure your financial reports are accurate and show the financial health of your business. A consistent process for checking and making adjustments includes accruals and prepayments. Software like Xero or MYOB can automate many of these entries, making the close process less error-prone and more efficient. - Review business performance
It’s essential to review your business performance regularly to catch potential mistakes in your business books and ensure everything is aligned with your business goals. By comparing actual outcomes with what was planned, you can identify potential errors early, adjust when required, and keep your reports up to date and accurate.
Conclusion
This blog shares an essential bookkeeping checklist to provide you with more clarity about your bookkeeping process. When done consistently, these tasks can reduce costly mistakes, save you time, and keep your business records accurate throughout the year. Trusted Tax Associates provide bookkeeping and accounting services, and all the ongoing work required to keep your business books accurate. With our services, you can stay compliant and focused on other important tasks of your business.
