Solid bookkeeping practice is fundamental, but at times can be overwhelming, even for those in the accounting field. Keeping financial records up-to-date and accurate usually involves a variety of tasks. If you get behind, it can derail your whole financial system, not to mention impact your business.
That’s why it’s critical to stay on top of bookkeeping tasks for up-to-date insights into the health of your business at any moment.
Having a well-defined workflow for bookkeeping, whether you manage your own business or you’re looking for a good checklist of items to help your bookkeeping clients, will help make sure that financial information is concise, cash flow is accurate, deadlines are being met, and nothing is getting missed. That’s where a weekly checklist comes in handy.
Here is the weekly checklist to help guide you through all the tasks that need monitoring:
Record each transaction (billing customers, receiving cash from customers, paying vendors, etc.) in the proper account daily or weekly, depending on volume. Although recording transactions manually or in Excel sheets is acceptable, it is probably easier to use accounting software like QuickBooks. The benefits and control far outweigh the cost.
✔️Document and File Receipts
Keep copies of all sent invoices, all cash receipts (cash, check, and credit card deposits), and all cash payments (cash, check, credit card statements, etc.).
Start a vendors file, sorted alphabetically, (Staples under “S”, Costco under “C,”etc.) for easy access. Create a payroll file sorted by payroll date and a bank statement file sorted by month. A common habit is to toss all paper receipts into a box and try to decipher them at tax time, but unless you have a small volume of transactions, it’s better to have separate files for assorted receipts kept organized as they come in. Many accounting software systems let you scan paper receipts and avoid physical files altogether.
✔️Review Unpaid Bills From Vendors
Every business should have an “unpaid vendors” folder. Keep a record of each of your vendors that includes billing dates, amounts due, and payment due dates. If vendors offer discounts for early payment, you may want to take advantage of that if you have the cash available.
✔️Pay Vendors, Sign Checks
Track your accounts payable and have funds earmarked to pay your suppliers on time to avoid any late fees and maintain favorable relationships with them. If you are able to extend payment dates to net 60 or net 90, all the better. Whether you make payments online or drop a check in the mail, keep copies of invoices sent and received using our accounting software.
✔️Prepare & Send Invoices
Be sure to include payment terms. Most invoices are due within 30 days, noted as “Net 30” at the bottom of your invoice. Without a due date, you will have more trouble forecasting revenue for the month. To make sure you get paid on time, always use an invoice template the contains the right details such as payment terms, itemized charges, and your payment address.
✔️Review Projected Cash Flow
Managing your cash flow is critical, especially in the first year of your business. Forecasting how much cash you will need in the coming weeks/months will help you reserve enough money to pay bills, including your employees and suppliers. Plus, you can make more informed business decisions about how to spend it.
All you need is a simple statement showing your current cash position, expected cash receipts during the next week/month, and expected cash payments during the next week/month. Click on the link to download a free customizable cash flow statement template.
If you’re looking for simple workflow templates to stay on top of your bookkeeping checklist, check out this resource:
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