If you don’t stay on top of your accounting and bookkeeping, it can cause problems for your business. In this episode of MissionBusinessPodcast.com Bernard Roesch shares a process you can use to stay on top of accounting in your business.
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* Note that this blog post is derived from the transcript of the audio discussion. Please excuse any typos or odd wording.
Keeping your accounting records and financial systems updated is extremely important for smooth functioning of your business. For example, if your books are not updated, you may not realize that certain clients haven’t paid for their services, or that client payments have been deposited into the wrong accounts, or maybe not deposited at all.
In this post, we discuss some of the easy ways to stay on top of your accounting while still running your business.
Process Incoming Mails Everyday
Make it a routine to check and process you emails on a daily basis.
- By processing your mail daily, you can identify any bills or checks that need to be processed.
- You’ll also need to look for important notices or other issues that you need to address, such as IRS notices.
As you go through your emails, document all of the relevant information / notes in your accounting system.
Update Day-To-Day Operational Data Every Week
Throughout the week, certain situations will happen that you need to document in your accounting system. For example;
- You’ll need to bill your clients for services.
- You’ll need to pay bills for vendors.
- You also may need to document inventory changes.
By doing this on a weekly basis, you can make sure that your accounting system is up to date with these operational changes in your business.
Reconcile Accounts And Produce Reports Every Month
Although you don’t need to do this every day or even every week, you should do it once every month.
- It’s important to reconcile your accounts on a monthly basis to make sure that your data is accurate.
- In addition, producing financial reports periodically can help you gauge the health of your business.
On a monthly basis, you should be doing these things within your accounting system.
When To Hire A Bookkeeper
While you may not need a full-time bookkeeper to operate your business, a bookkeeper can help you in certain situations while the business can focus on regular tasks. For example; receiving payments and recording those in your accounting system, or sending bills to clients.
A bookkeeper can help with accounting-related tasks. For example;
- Reconciling your accounts to make sure the data is accurate,
- Configuring financial reporting, and also
- Producing and analyzing financial reports for you.
Additional Resources And Next Actions
If you’re missing these important accounting routines in your business, contact Bernard at MissionBusinessPodcast.com for an initial consultation.
Bernard has a lot of other content that you can use to get familiar with accounting and bookkeeping methods to stay on top of accounting in your business. We would also request our readers and listeners to visit MissionBusinessPodcast.com and get access to a wealth of information that Bernard has been sharing with us in the past.