Basic bookkeeping is the essential task small business owners must complete to keep track of their finances, build financial statements, record deductible expenses and prepare taxes. It’s an important first step before moving on to full service accounting that helps your small business drive profits, cash flow and growth.
Every day, small business bookkeepers must work through a list of tasks to ensure the accuracy and integrity of their books. Some of these may be automated, and some will be completed manually. To find out more about Bookkeepers Hereford, try visiting Office Support, a provider of Bookkeepers Hereford.
Record all sales revenue. This could be as simple as writing them in a cash book or punching them into a spreadsheet, or you might be able to download the data directly from your point of sale or invoicing system. Every transaction that reflects money flowing into the company must be recorded, including petty cash and credit card spending.
Reconcile the bank and credit card accounts. This step is necessary to ensure that the number of incoming payments matches up with the numbers in the business’s general ledger. The number of outgoing expenses should match up with the number of invoices issued and paid.
Follow up on outstanding invoices. This is the task that keeps cash flowing in and ties up loose ends by tracking down customers who haven’t paid their bills. Whether your business uses cash or online payment systems, you’ll need to issue and process payroll at least once a month, as well as record the amounts for each employee’s wage slip and any deductions made from payroll taxes.
