It is a part of the business to do bookkeeping. This is an equally important task because it can give you reports and information needed for strategic decision making. It is important that you understand how your finances work so that you can be confident about your money and to keep things move smoothly. To make your life easier, we listed the five basic bookkeeping checklist to make it easy for you to check your books.
1. Check whether you are using the right bookkeeping software.
Every business should have a bookkeeping software to be able to record their transactions but finding the right one is another question. You should be able to know if the accounting software fits your business. You can seek advice from professional accountants on the best bookkeeping software that fits your business.
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2. Review your bank account balances
If possible, review your bank account balance every day. You may include it in your morning routine so that it will be easy for you to identify discrepancies on your account. Also, make sure that your personal and business bank accounts should be kept separate. With this, you can easily track your business expenses and you can easily organise all your business transactions. Review your account balances on a regular basis so that you would know how much money you have, and you can track where it is going.
3. Collect and verify your business receipts
To be able to have accurate financial information, you need to be able to verify all receipts regularly. No matter what method you use, it is important that these receipts should be verified whether it is a business expense. You may either store it physically or virtually. With this, there is enough evidence of the expense and it will help you if there will be discrepancies in the cash flow. Collecting and verifying these receipts can help you when you need to file your taxes.
4. Check weekly reports
You need to be able to have a weekly report of what is going on with your business. Take time to perform a quick check-in with your finances every week. This is for you to see the big picture of things and see whether everything is running smoothly. Make this a weekly habit so that you will not forget this task.
5. Review your forecasted budgets and cash flow.
You should be able to have your forecasted budget at the beginning of the year so that you can keep track your expenses. You can do this on a quarterly basis just to check whether the business is keeping on track with the goal. This is also to make sure the business will be able to sustain the overhead costs incurred. It is important to follow the budget to avoid having financial challenges in the future.
May this checklist can help you in bookkeeping your business. Always make sure that the information are accurate and correct and you will be able to obtain a good bookkeeping record.