Essential Bookkeeping Tasks For Business Owners

Want to keep your business finances in order? It’s all about staying on top of your bookkeeping. No matter how long you've been doing it, knowing your bookkeeping tasks inside and out is essential for keeping your business organized and efficient.

Let’s dive into what you need to tackle and when.

Daily Duties: Setting the Foundation

Every day brings a new set of tasks, but keeping on top of these will save you loads of stress later on:

• Check Communication: Don’t let the paperwork pile up. Open, review, and respond to any message, email, or letter that comes in. It might seem tedious, but a little effort every day goes a long way.
• Review Your Bank Balance: Ensure that your finances are where they should be. A quick glance daily can help spot any discrepancies early on.
• Clear Receipts & Paperwork: Go digital! Scan and file those receipts and documents so you can find them easily when you need them.
• Prepare & Send Invoices: Make sure you’re getting paid for your hard work. Send out customer invoices regularly.
• Record Time & Mileage: Whether you’re clocking hours or driving for work, keep accurate records to ensure you get every penny you deserve.
• Track Profit & Loss: Keep an eye on your profit and loss statements. It’s important to know if you’re on track to meet your budget.
• Save for Taxes: Taxes can sneak up on you, so set aside a little each day to avoid any nasty surprises.
• Monitor Cash Flow: Cash is king. Always know what’s coming in and going out.
• Pay Yourself: Don’t forget to compensate yourself! It’s easy to overlook, but it’s essential for sustaining your personal finances.
• Stock Check: If you hold inventory, make sure your stock levels are where they should be. No one likes a stock-out or overstock.

Weekly Chores: Keeping the Wheels Turning

Once you’ve got the daily stuff down, shift your focus to these weekly must-dos:

• Deposit Cheques: Keep your cash flow healthy by banking regularly.
• Process Supplier Invoices: Pay your suppliers on time to maintain good relationships and avoid late fees.
• Credit Control: Follow up on overdue invoices. A gentle nudge can do wonders.
• Track Expenses & Income: Knowing where your money is going and where it’s coming from helps you make informed decisions.
• Update Petty Cash: Keep an accurate record of small expenses; they can add up!

Monthly Maintenance: Evaluating the Big Picture

Each month brings a chance to step back and assess how things are going:

• Reconcile Bank Accounts: Ensure your records match your bank statements. This helps catch errors or fraudulent activity.
• Produce Profit & Loss Statements: Compare this month’s figures with the last and see how you’re doing against your budget. Adjust if needed.

Quarterly Check-ins: Planning & Compliance

Every three months, take a deeper dive into your business’s financial health:

• Review Profit & Loss: Take a closer look at the last quarter’s performance. Are you on track?
• Process VAT Payments: If you’re VAT-registered, don’t forget those quarterly payments!
• Reassess Cash Flow: Ensure your business can comfortably handle the next quarter.

Yearly Wrap-Up: Reflecting & Preparing

Finally, it’s time to close out the year and prepare for the next:

• Annual Profit & Loss Statement: Review your yearly performance and compare it to your budget.
• Prepare Tax Return: It’s that time of year—get everything in order for tax season.
• Close Your Books: Wrap up your accounting for the year to start fresh in the new one.
• Self-Assessment/Annual Accounts: If required, submit your annual accounts to Companies House or handle your self-assessment.

Keeping up with these tasks might seem overwhelming at first, but by breaking it down into daily, weekly, monthly, quarterly, and yearly to-dos, you’ll find it much more manageable.

Staying organized can help you make better decisions, reduce stress, and ensure that your business runs like a well-oiled machine.

So, take it one step at a time, and before you know it, bookkeeping will become just another part of your routine!

Need help streamlining your books and handling taxes? Contact CFO Consultants, LLC

Helping Writer: ADIL ABBASI - CMA