Good accounting practices and keeping organized financial accounting records are both crucial tasks for the success of all businesses. Even large organizations have failed due to disorganized accounting practices, so small businesses must be sure to stay on top of accounting tasks each week. These are four accounting tasks you should complete weekly, rather than monthly:
Bank Account Reconciliation
A proper bank reconciliation is very important, to ensure that you have the cash that you think you have. Small business owners may make the mistake of waiting to reconcile their accounts until they receive a bank statement, but these are only mailed once a month. A month is a long time to wait between reconciliations, as a lot can happen in four weeks. Instead, make a note to reconcile all of your cash accounts at least once a week.
Every business should have a system for vendor payments, as this is crucial for keeping track of debts and establishing a good credit history with vendors. You likely have different payment terms for each vendor, so it’s not possible to pay bills only once during a month. If you only pay bills at the beginning of the month and receive a “due on receipt” invoice, the vendor may freeze your account or cancel your service. Be sure to make these vendor payments once a week for efficiency, and to ensure your bills are paid on time!
In addition to vendors, it’s crucial to keep your customers happy. This is why it’s essential to record customer receipts in a timely fashion, as you don’t want your customers to ever receive a “past due” notice. Recording customer receipts can be done daily if you have the time, but once a week is also sufficient. Just be sure to mark the date the payment was received, rather than the postmark or current date.
Vendor payments and customer receipts are a significant portion of your transactions, but your business will likely have others as well. Common transactions that need to be recorded weekly include auto-debits, interest payments, and bank fees. An accountant will be able to record these before a bank reconciliation to make the process go smoothly.
Trust the Professionals at Goldin Group
At Goldin Group LLC, we understand that as a self-employed person or business owner, keeping up with accounting and taxes is time-consuming and can even be overwhelming. That’s where we can help! We work with individuals and businesses in Maryland (DC Metro Area), offering a variety of financial services designed to save you time and lower your tax burden. If you are a small business that is looking to outsource your accounting or if you need help managing any aspect of your business’s or nonprofit’s finances, we want to hear from you. Call us at (301) 913-0008 or email email@example.com to make an appointment.