Bookkeeping and financial accounting records are crucial for the success of all businesses. Even large organizations have failed due to disorganized accounting practices, so small businesses must be sure to stay on top of accounting tasks each week. Continue reading for four accounting tasks you should complete weekly.
Bank Account Reconciliation
A proper bank reconciliation is very important, as it means that you have the cash that you think you have- which is, of course, essential for any business. Small business owners may make the mistake of waiting to reconcile their accounts until they receive a bank statement, but these are only mailed once a month. A month is a long time to wait between reconciliations, as a lot can happen in four weeks. Instead, make a note to reconcile all of your cash accounts at least once a week.
Every business should have a system for vendor payments, as this is crucial for keeping track of debts and establishing a good credit history with vendors. You likely have different payment terms for each vendor, so it’s not possible to pay bills only once a month. If you only pay bills at the beginning of the month and receive a “due on receipt” invoice, the vendor may freeze your account or cancel your service. Be sure to make these vendor payments once a week for efficiency, and to ensure your bills are paid on time!
In addition to vendors, it’s crucial to keep your customers happy. This is why it’s essential to record customer receipts in a timely fashion, as you don’t want your customers to ever receive a “past due” notice. Recording customer receipts can be recorded daily if you have the time, but once a week is also sufficient. Just be sure to mark the date the payment was received, rather than the postmark or current date.
Vendor payments and customer receipts are a significant portion of your transactions, but your business will likely have others as well. Common transactions that need to be recorded weekly include auto-debits, interest payments, and bank fees. A bookkeeper will be able to record these before a bank reconciliation to make the process go smoothly.
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Unlike other accounting firms, The Harding Group, located in Annapolis, MD, will never charge you for emails or phone calls and will strive for open communication with our clients. Whether you are interested in business advising, tax preparation, bookkeeping and accounting, payroll services, Training + support for QuickBooks, or retirement planning, we have the expertise and years of experience to help. We serve clients in Annapolis, Anne Arundel County, Baltimore, Severna Park, and Columbia. If you are ready to take the stress out of taxes, contact us onlineor give us a call at (410) 573-9991 for a free consultation. For more tax tips, follow us on Facebook, Twitter, YouTube, and LinkedIn.