Using this checklist will ensure you meet all of your financial obligations. It’s a lot to navigate—and if you want to stay on top of all your accounting tasks (and stay on top of them at the right time), having a checklist can help. Separate business finances, choose a bookkeeping system, track transactions, and review reports regularly. Categorizing expenses into groups like rent, supplies, and marketing ensures accurate reports and smooth tax preparation. Set aside a portion of your income for taxes to avoid a large tax bill at the end of the year.

• Most invoices are due within 30 days and are noted as “Net 30” at the bottom of your invoice.
• To gauge how efficiently you collect revenue, calculate your accounts receivable turnover ratio.
• Keeping your finances in check means keeping your paperwork in order.
• Regularly analyzing and adjusting your cash flow projections allows you to anticipate shortfalls and plan accordingly.
• To simplify your accounting and tax process, you may want to get an accountant.

By spreading out the cost of these assets over their useful life, you avoid overestimating their worth on the balance sheet. In order to gain a comprehensive understanding of your small business’s monthly performance, it is important to examine your accruals and deferrals. It is essential to carefully review any modifications made and ensure they are properly recorded and calculated.

What is a bookkeeping checklist?

If you have not prepared a budget, compare your current year-to-date P&L with the same prior-period, year-to-date income statement to identify variances and make adjustments. Managing finances doesn’t have to be the bane of your professional existence. Nor does it have to take you away from the personal reasons you started your business in the first place. Designed for business owners, CO— is a site that connects like minds and delivers actionable insights for next-level growth. This blog offers practical tips and insights to help you manage money, boost income, and live the life you deserve.

Should you choose single-entry or double-entry bookkeeping?

• Without receiving remuneration for your services, you’re running a charity rather than a business.
• No matter how you get there, or how long it takes, your business’s financial success is the result of keeping a steady focus on the bottom line.
• Understand your tax obligations and deadlines, and make estimated tax payments if required.
• In today’s digital age, leveraging technology and software tools can significantly enhance the efficiency and accuracy of small business accounting processes.
• Onboarding new accounting clients can be difficult if you do not have a transparent and duplicatable client onboarding process.

The discussed topics will depend on relevant to the client’s needs, but some general topics can be expected to be covered, which should be included on your new accounting client checklist. A key way to become more efficient, and not annoy your new client, is to create standard processes which eliminates the guesswork everytime you onboard a client. For startup founders, tax preparation is essential to avoid penalties and reduce tax liabilities. Following this checklist can help you stay compliant and optimize deductions.

Common challenges when onboarding new accounting clients

Managing the financial health of a small business requires meticulous attention to a variety of accounting tasks. Breaking these tasks down into daily, weekly, and monthly activities can help small business owners stay organized and ensure nothing falls through the cracks. Below, we outline the essential accounting tasks every small business should prioritize.

How to Build a Preventive Maintenance Plan for Your Fleet That Actually Gets Followed?

Once you’ve classified your labor force, collect a W9 from contractors and federal and state W4’s from employees. For example, you might use a digital spreadsheet alongside a physical ledger. Or you could use a tool that automates the bookkeeping process for you, like Countingup. Check out our guide on how to establish a small business so you can start turning a profit ASAP. Some new business accounting checklist CPAs and bookkeepers require a retainer if you want monthly assistance, but many simply charge by the hour.

It’s crucial to hold onto your receipts, bills, and contracts and make sure they’re safe. By organising your receipts, you can easily keep track of your spending, and sorting your bills helps with paying them on time. And most importantly, make sure those contracts are locked up tight to follow the law. It’s crucial to assess the market value of your inventory and make necessary adjustments based on both physical counts and market conditions. This procedure not only resolves any discrepancies but also ensures accurate financial reporting, which in turn helps with strategic decision-making for the upcoming year. Take a close look at your general ledger to verify that all your small business transactions are accurately recorded in the correct accounts.

It can help improve the accuracy of your books and records, save your team time, and prevent financial loss. Regularly analyzing and adjusting your cash flow projections allows you to anticipate shortfalls and plan accordingly. Use your weekly financial data to update projections, considering upcoming expenses and expected revenues.

This Start-Up Accounting Checklist covers everything you need to know to manage your finances effectively. It is essential to monitor income and expenses and cash flow regularly. If you have any uncertainties, seeking guidance from an accountant or utilising QuickBooks Online can assist in streamlining the process and guaranteeing accuracy right from the beginning. It is important to arrange your tax documents, bank statements, and financial reports in order to guarantee the accuracy of your records. Safely storing these documents, whether physically or digitally, safeguards sensitive financial information and guarantees confidentiality and adherence to regulations.

Invoicing your customers

A cash flow statement tracks how your business spends money over the year, with inflows representing income and outflows representing expenses. Integrating accounting software with other business tools can streamline processes and reduce manual data entry. Though you have reviewed your semi-monthly payroll reports, the IRS and most states require quarterly payroll reports and any remaining quarterly payments. You can either do it yourself or, again, get help from a payroll service provider. Instead of a mad scramble at year’s end, a small business accounting checklist can help you stay organized throughout the year for an easy year-end close. An expense management software can be invaluable here, as it keeps all your financial data organized and easily accessible.

You may also choose to send out statements to your customers at the end of the month. This is a good practice, particularly if a customer has past due invoices. Paying bills and issuing invoices promptly will minimize the chances that you’ll end up with a cash flow issue. Send invoices promptly, follow up on late payments, and pay vendors on time to maintain strong relationships. Managing your finances effectively from the start ensures your business remains profitable and compliant.