“A stitch in time saves nine”
In general, every little thing that you put off until tomorrow, that which can be done today pushes you one step closer to an insurmountable pile of tasks dwindling by a choking deadline. The consequences of procrastination have far more pronounced repercussions in the realm of bookkeeping for small businesses. Certain bookkeeping tasks require to be taken care of year-round. It has rather become a tradition for most people to do their bookkeeping once a year for taxes. To simplify the whole conundrum and decode the fiasco it would be important to understand what bookkeeping tasks you should be worried about on a daily basis.
The day to day bookkeeping activities that would require top priority would be the transactions that occur in a business’s financial world. Keeping track of money going in and out of a business is very crucial. With regards to the money coming in the customer invoices, payments coming in, and bank deposits need to be closely monitored. Think of the day to day bookkeeping tasks as the things that make the finances of your business tick.
Here is a list of tasks that if done on a daily basis will not only help alleviate a great deal of burden during the tax season but also help establish transparency and clarity on a whole new scale:
1. Monitoring and following up with client invoices:
Paying detailed attention to client invoices is absolutely critical to run a business in the black. Maintaining a track record and having a clear understanding of clients, the dispatch of respective invoices, whether their payments have been received on time, and whether they have an outstanding balance will all add up to the smooth functioning of the business. If the business offers a 30/60/90-day payment terms, it is imperative to monitor which clients have past-due accounts. By attending to client invoices on a daily basis one will be able to understand the clients with whom caution should be exercised, and clients who are genuine assets to the business.
2. Processing payroll and maintaining employee records:
Even when it comes to solo-entrepreneurs, monitoring payroll should be made a daily bookkeeping task. It can be consolidated later on a weekly basis to get a clearer perspective. Understanding how payroll expenditures affect a business and then analyzing the areas where the company could use extra manpower would be very useful n helping the business grow.
3. Recording the financial transactions of a business:
As a profession Bookkeepers provide essential services to businesses by processing and recording everyday transactions and producing financial statements. They are responsible for recording financial transactions, maintaining accurate records and providing reports or statements to managers. These transactions will have to be required to be maintained as a permanent record. Software like MYOB, QuickBooks can be employed to carry out this practice. Digital spaces can only get cheaper. But rental rates can fluctuate. Keeping physical documents not only collect dust but also age and fade with time. You also have to make space in the office to keep these physical documents.
4. Reconciliation of Bank Accounts:
It should come as no surprise that bank statements are one of the most important documents to keep. They are the only business record one can count on. The bank statements are the basis for everything else the business stands on. Bank reconciliation, usually the simplest is also one of the important processes of bookkeeping. Do not thrash your bank statements, at least keep a record of the soft copies.
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For Instance, at the end of the month, you realize that there is a difference between your accounting records and the bank statements. Wherein you should expect a cash of $6,600, your bank statement shows only $6160. Having a day on day tracking would help easily pinpoint as to where things went wrong.
5. Reporting any irregularities in data to management:
Any irregularities noticed, should be notified to the management immediately for preventive or remedial measures. If prompt measures and actions are not taken, these irregularities could lead to a more complicated issue that would take a lot of time and effort to sort out. As the saying goes “Nip it in the bud”, it is best to eradicate these problems when spotted.
We at Velan are equipped with skilled accountants possessing over a minimum of 7 years of experience in the domain of bookkeeping. Available round the clock at your disposal, we cater to services with utmost sensitivity and sensibility that the work demands. With encomiums and testimonials speaking for themselves, one needn’t think twice before calling us. Our pricings are highly competitive and guarantee international standards in terms of delivery. We cost less than an in house accountant’s salary exclusive of his paid vacations, incentives and bonuses. Some of the services we provide are listed below:
- Bank Reconciliation
- Statement of Assets and Liabilities
- Accounts Receivable and Payable
- P & L Statements
- Payroll Services
- Tax Preparation
Call us today!!! And give your business the head start that it deserves!