All businesses have some form of accounting. It can range from collecting receipts and invoices in a box to give to an outside accountant, all the way to having written policies and steps for every accounting procedure.
While we love the opportunity to help clients on all levels, we encourage you to have an organized, systematized approach to accounting. The tasks listed below can help every business – from the ones working with “a shoebox” to the ones with entire accounting departments.
An Important Daily Task
It is critical to stay on top of expenses daily. (If daily is too difficult, determine a frequent interval, for example, Monday, Wednesday, or Friday, and stick to it.) Some companies do this by having their bank automatically download transactions into their accounting software. This step also helps to find any errors quickly because of the sheer frequency of it. Furthermore, putting your transactions into the proper category on a regular basis is easier than determining an expense from four months earlier.
Poor cash flow is one of the greatest harms to a business. To combat this, bill your customers regularly. Some business owners are so busy working in the business they neglect to send out invoices for work rendered. Sure, they will eventually invoice those customers, but once a project is done it should be billed to give businesses the cash flow needed for operating expenses. Setting up a weekly time to check for finished work is a good way to keep current.
In addition, record customer payments as they are received. Otherwise, your accounting books could paint a bleaker picture than you really have. You don’t want to miss out on a necessary purchase because your decision was based on an incorrect book balance.
Pay your bills monthly. It’s good practice to set them up to be paid automatically. Of course, there are situations where an automatic payment is not good for your company. We understand this. But if you can set up automatic bill payments, you save yourself time and mental energy.
We also suggest a monthly check-in on your business’s trajectory toward the goals and budgets you set. You’d rather know now if you’re missing the target so steps can be taken quickly to get back on track.
Morgan & Associates are Ready to Help with Accounting
If these tasks seem daunting or “one more thing to do” on your already full list, contact us. You don’t have to handle these tasks on your own! We at Morgan & Associates can assist you with anything from minor to major accounting projects.
When you fill out the form below, one of our trusted experts will get in touch with you to see how we can help.