Making sure that all your I’s are dotted and t’s are crossed is an important part of doing business. To ensure this is happening, there are several monthly tasks that should be happening that will keep your small business tax compliant. Knowing what they are, can help you stay on top of things and keep yourself organized. Mark Dicus & Company is here to talk about important accounting tasks you should be doing monthly to keep your small business on the right path.
Make Sure You’re Doing These Accounting Tasks Monthly to Stay Tax Compliant as a Small Business
There are several accounting tasks that should be done on a monthly basis to ensure you’re staying tax compliant. The more organized you are, and on top of things you are, the better tax season will be for you. Here are the monthly tasks you should be making a priority:
– Bank Reconciliation: It’s important that each month you reconcile your bask accounts. This is accomplished by comparing the transactions that you have recorded against the transactions that are showing on your bank statement. This can help you catch any errors or discrepancies that may exist. Common errors include missing transactions, bank fees, and others that could get in the way of keeping your financial records accurate.
– Review Accounts Receivable/Payable: Keeping all the information straight in accounts receivable (money owed by customers) and accounts payable (money you owe to vendors or contractors) is another crucial part of doing business. This will help you maintain cash flow and ensure that you are effectively managing your capital. If there are overdue invoices from customers, you can send out another statement. It can also help you keep track of any payments that you may have coming up with any vendors.
– Update Your Financial Statements: It is important that you keep your financial statements current. This includes the balance sheet, income statement, and cash flow statement. When this information is correct, you will be able to see trends and make more informed decisions for your company. These financial statements will allow you to track your revenue, expenses, liabilities, assets, and cash flow.
– Inventory Management: While some businesses don’t deal with inventory, there are plenty that do. If yours does, it is important that you are managing that inventory, at the very least, on a monthly basis. This can help you avoid overstock, control costs, prevent stockouts, and maximize your profitability.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
When you’re staying on top of these tasks each month, you will find that you’re ready for tax season when it rolls around. Keeping your financial documents and statements is vital. If you’re having a difficult time staying on top of all the accounting tasks you have, it may be time to turn to Mark Dicus & Company for the help you need. You can count on our team to take on any accounting, bookkeeping, or tax preparation tasks you may need. Call us today!