For the success of any small business, strong bookkeeping and accounting are crucial. Some small business owners believe they don’t need to learn the details of accounting for their business, since they may believe their business is more reliant on cash flow. You may create problems, however, if you run your small business’s finances the way you run your personal finances. With this in mind, we at Mark Dicus & Company would like to elaborate on few small business accounting basics you should do every week, to avoid any financial mistakes for your business.
Bank Reconciliation
You can’t reconcile your bank account too much as a small business owner. Being vital for any business, reconciliation means that you are ensuring you have the cash you think you have. Especially if any mistakes occurred, some people wait for a monthly bank statement to reconcile accounts, but that can take a long time. You can reconcile your account anytime you like as long as you have Internet access with the availability of online banking.
Paying Vendors
For any business, a helpful accounting practice is to establish a system for vendor payments. This will help you keep track of your debts and help you and your business develop an excellent professional reputation. Because your vendors often have different payment preferences, weekly check-ins with vendors are efficient. To save you from problems in the future and save your bookkeeper some extra work, remind yourself of who needs to be paid this week.
Customer Receipts
They will most certainly be unhappy if you mishandle a customer’s payment, and happy customers are essential for any business. Daily, if you can, make sure your customer receipts are recorded in a timely fashion. In order to make time at least once a week to record receipts helps you stay up-to-date, daily schedules can be unpredictable, however. Keep in mind that you need to mark the date the payment was received and not the date you are recording it.
Small Business Accounting
Though expenses always pop up for small businesses, other vendor payments and customer receipts are weekly responsibilities. For instance, interest payments and bank fees may need to be recorded. You will develop the rhythm and system that works best for you as you continue to do these small business accounting tasks weekly. Any business can fall apart, The critical thing to remember is that without legible and well-documented finances. To make your small business can be the best it can be it is essential to stay on top of your finances.
Bookkeepers, Small Business Accountants & More in Walnut Creek, Daly City, San Mateo, Palo Alto, Mountain View, San Jose, Pleasanton & Greater San Francisco, California
Mark Dicus & Company can take care of all of your accounting needs to help you have the time to better manage your time in other areas. Our experts have the training and experience to ensure your accounting, bookkeeping, and tax services are done correctly. Contact Mark Dicus & Company for a consultation and we can discuss the area of expertise you need and answer all of your questions and address your concerns.