When we asked small businesses about their QuickBooks bookkeeping, folks told us they would like to streamline their tax preparation and be more tuned-in to the state of their businesses.
Several things must be in place to achieve this:
- Businesses must have a realistic budget plan.
- Businesses must have consistently good small business QuickBooks bookkeeping (or another quality accounting system).
- Results must be reviewed regularly.
- Business owners must be well versed in at least three basic financial reports: the cash flow statement, income statement, and balance sheet.
Not sure if your business meets the above requirements?
Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. can help with an introductory small business QuickBooks bookkeeping review (even if you don’t use QuickBooks). Visit our Contact page by clicking here and mention the SMALL BUSINESS QUICKBOOKS BOOKKEEPING INTRODUCTORY REVIEW.
The people we spoke to also taught us that business owners aren’t always sure when to do what as far as small business QuickBooks bookkeeping is concerned. So we wrote a Small Business QuickBooks Bookkeeping timeline below as a helpful guide:
DAILY TASKS
Cash Position: First things first! Always know how much cash you have on-hand every day.
WEEKLY TASKS
Record Transactions: Every transaction should be correctly recorded into its proper account at least once a week.
Archive Receipts: Keep a copy of them all (preferably digitally) in an organized way so you can find them later.
Accounts Payable: Look at your unpaid bills by vendor and closely track all amounts due, billing and due dates. Earmark funds to pay vendors on time. Sign checks if needed or talk to suppliers about electronic payments to save money and time.
Invoicing: Create professional invoices or customize a QuickBooks invoice and send them to customers by e-mail for a faster turnaround. Encourage on-time payment by including payment terms and an early-pay discount. To receive even faster payments, accept free ACH and credit card payment methods and then setup recurring fixed-rate client payments.
Cash Flow Review: Create a statement to see your current cash position, anticipated cash receipts (receivables), and expected cash payments (payables) for the upcoming week. Not sure how to do this? Call us at 818-501-3336 for a little guidance with your small business QuickBooks (or other) bookkeeping.
MONTHLY TASKS
Balance The Checkbook: Audit bank and credit card transaction entries for accuracy and then compare the QuickBooks account balances against your banks’ account balances; they should match. If they don’t, then troubleshooting is in order. E-mail us if we can help at info@sourceoss.com.
Accounts Receivable Aging Review: Look at your past-due receivables early in the month and then send polite reminders to people who haven’t paid up yet.
Analyze Inventory: Determine which items are currently hot and make sure you’ll have enough inventory to support those sales; order more if you might sell out. Pay attention to slower-selling items as well, and either put them on sale or remove them from your catalog altogether.
Payroll Taxes: Every month you should determine how much and when the income, Social Security, Medicare, and disability taxes are due to the appropriate agencies. Avoid expensive penalties by withholding, reporting, and depositing payments to agencies on time.
Compare Profit and Loss to the Budget: You should have a budget plan implemented. Click here to contact us if you don’t and we’ll help set one up. Look at your established budget and compare it to your current profit & loss statement. Then look at your P&L from the same prior-period year-to-date and see how that compares, too.
Compare Current and Prior Year Balance Sheets: Look at your current balance sheet and compare it to the same period from last year for insight into how well you’re managing your assets and liabilities.
QUARTERLY TASKS
File Estimated Taxes: Avoid fines and reduce your year-end tax crunch burden by paying estimated taxes every quarter instead.
Payroll Reports: The IRS and most state tax boards require quarterly payroll reports and payments. Don’t be late!
Sales Tax: If your state requires that you pay sales tax, then ensure you’re complying with all required payments on time or you’ll be penalized.
Profit and Loss Estimate: Determine how much money you are actually making, the differences between revenue and expenses, and then evaluate any changes to determine their cause.
YEARLY TASKS
Year-End Accounts Receivable Review: Look at what’s due to you and then decide whether to write-off old, unpaid bills for the tax deduction or hire an agency to help you collect on them.
Year-End Inventory Review: Figure out the value of your unsold inventory and claim it as a tax deduction.
Complete IRS forms W-2 and 1099-MISC: Employee annual earnings are reported on a W-2 form and independent contractor earnings are reported on a 1099. Don’t miss the February 1st federal reporting deadline for both.
Year-End Financial Reports & Tax Returns: Review your final financial reports for the year. Identify and correct any errors before sending them to your CPA for year-end tax preparation.
Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. makes it our mission to simplify finances, improve quality of life, and deliver peace of mind to our clients.
Would you like a personalized timeline of important tax dates so you’ll never file late again? We can make that for you.
Would you like a second set of eyes to analyze your financial reports? We can look at them and offer fact-based, actionable advice.
Do you feel overwhelmed trying to keep up with payroll, sales reporting, quarterly taxes, employee benefits, and everything else that comes with running a business? Let us shoulder the weight.
Our certified QuickBooks Pro Advisors are passionate about cultivating results, solving problems, and helping people to make informed decisions.
We are the small business QuickBooks bookkeeping experts!