Weekly Accounting Tasks

Important Accounting Tasks that need to be Done Weekly

How many responsibilities and tasks do you manage each day in your small business? Entrepreneurs and small business owners often wear many hats throughout the day, and it can be hard to keep up with the long list of responsibilities.

Too often, business owners get caught up in the daily stresses of managing a company, and standard business practices fall to the wayside. If you are letting important bookkeeping and accounting tasks stay on the backburner, then you are setting yourself up for problems in the future.

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Instead of waiting for everything to fall to pieces, it is better to take a proactive approach to managing your business finances better. You will see that ongoing accounting and bookkeeping are critical to support the financial health of your company. These tasks are easy to do and easy not to do, but they will make a big difference to help you avoid the major issues that you could be facing in the future.

Putting Together a Business Plan

The first step to a good accounting and bookkeeping system is to be proactive with your financial plan. Good intentions don’t go very far to make sure that the bills are paid, and the accounts are balanced. So, you need to put together a plan that is realistic for your business, to ensure that there is accountability to complete the small tasks.

This plan needs to include activities that will help you properly record the transactions, stick to a budget, and look for irregularities on a consistent basis. Write down your plan and your goals, so that you can refer to your notes when there is a question.

Many small business owners don’t have the financial education to know how to put together a plan that is going to work. So, you should strongly consider the benefits of talking to an accounting professional if you want to ensure the long-term success of your company.

Here is a list of tasks that should be included in your business financial plan:

Task #1: Check Your Cash Position Daily

When you have money moving in and out of the bank account, you need to make sure that there is always enough to cover the payments that will be coming through. It has been said that cash is king, and there is no doubt that the business will run into trouble if you don’t have cash.

Some business owners start their day by checking their email and looking at local news sites. Instead of getting caught up in the online noise, you need to log into your financial accounts to see the status for the day.

Look at the balances that are in each account. Then, consider the money that you are anticipating to receive during the week. Finally, consider the bills that are due to ensure that you have enough money to cover those expenses. Daily awareness of your cash position can help you avoid problems such as overdraft fees or bounced checks.

Task #2: File and Document Transactions

If you want to maximize the profitability of your company, then you need to be leveraging tax write-offs that are available. But, it is hard to track these expenses if you aren’t keeping records and documentation. We agree that it can be a hassle to manage receipts and paperwork, but it is a necessary part of owning a business. Without this documentation, you will either miss potential deductions, or you could be facing an issue if the IRS audits your company and you don’t have the receipts to back up the write-offs.

Have a good filing system where you can store invoices, receipts, and documentation for anything else related to money that was received or spent. You might consider putting together a vendor file for each business that you work with. Or, you could record the receipts by month if you prefer.

The best solution is to ensure that these documents are recorded in your online system first, then have a filing cabinet where the hard files are kept. If you need to refer to a specific document, then you can look at your computer accounting system to find the transaction. Then, you will be able to locate the paper in your filing cabinet quickly.

As a business owner, you shouldn’t be worrying about paperwork filing and other busy work. Instead, have a secretary or a bookkeeper assigned to this task. Then, you can focus on other responsibilities without worrying about receipt management.

Keeping up with transaction recording and document filing often only takes a few minutes each day. But, you will be facing hours of work if you procrastinate it for a few weeks or months.

Task #3: Send Outstanding Invoices

Invoicing is an essential task to ensure that you are receiving money to pay for your business expenses. Sometimes, the invoices get lost in the pile of paperwork. If you have delivered services to a customer, then you need to make sure that you follow up with an invoice to get paid.

Putting together an invoicing system is essential to ensure uniformity when you send each request for payment. Many accounting systems have built-in invoicing features, so you don’t need to worry about creating invoices manually.

The best strategy is to have a set day of the week when invoices go out. Once a week, assess the work that was delivered and put together the invoices. Maintaining this consistency increases the likelihood that you will be paid promptly because your customers will know what to expect.

This schedule also gives you the opportunity to look at accounts that are past-due, so that you can send out reminders if needed. On the invoices, make sure that you have detailed information about the due date of the invoice, as well as payment options that are offered.

Task #4: Review and Pay Your Bills

Sort through the invoices that you have received from your vendors to make sure that you know the costs that are due for the week. Staying ahead of these invoices will help you to avoid unnecessary costs for late fees and interest payments. As you look at your Accounts Payable report, you need to make sure that you were billed correctly for the products or services that you received. Also, consider if any of the vendors offer discounts for early payment.

If you are having cash flow problems, then you might need to reach out to the vendors to negotiate different payment terms. These conversations can help you to streamline your cash flow and anticipate upcoming costs.

As you are looking at the bills that need to be paid, it is a good idea to assess your anticipated cash flow. For example, if you have a big payment due in a few weeks, then you need to make sure that the bank account will be padded enough when the payment processes. Sometimes, it is necessary to get creative with the timing of the payments as they move through your account.

Task #5: Assess Costs and Expenses

Instead of paying every bill that comes across your desk and then moving onto the next task, consider the benefit of assessing each expense to determine if it is a necessary cost for your business. Too often, small business owners have a long list of subscriptions and services that add to the bottom line. You need to go through these line items to determine if they are needed.

Look for “extras” that you aren’t using on a regular basis, and cut that expense to improve your cash flow. For example, you might be able to cut back on software subscriptions by consolidating all of your accounting tasks into one system. Not only will you simplify your business management, but you can save money at the same time.

Hire a Bookkeeping and Accounting Team to Help

You are already managing enough responsibilities without worrying about the daily and weekly financial busywork. Instead of spending your time chained to your desk and crunching numbers, it is better to hire a bookkeeping and accounting team that can help. These services will give you the opportunity to focus on the management of your company, and you can rest assured to know that you have a financial professional taking care of the ongoing details for your business.

Accounting and bookkeeping services are a valuable way to ensure the future success of your company. Managing the numbers will give you information about the financial health and what you can expect in the future. If you are ignoring these basic tasks, then you can anticipate that you will need to work through a financial mess in the future.

Do you need help with ongoing accounting tasks? Our team at Easier Accounting is here for you! We are experienced in small business accounting, and we know the best systems to improve the future outlook for your company. For more information about the services that are offered, call us to talk to one of our expert team members: (888) 620-0770

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