Starting your new business can be exciting and stressful at the same time. There is a lot that goes into business finances, so maintaining those items for the first time can quickly become overwhelming. We’ve highlighted a few essential tasks to keep you on track and ensure your company’s success throughout its first year and every year after.
Check Cash Position
Start your day by routinely checking the amount of cash you have on hand. We recommend you repeat this task weekly and monthly to estimate how much money you will need in the future.
Organize and File Receipts
Organizing your receipts, invoices, and cash payments every week will help you find information easily come tax time. While Excel can be an excellent option to keep track of all expenses, it can time consuming and confusing. Instead, you can find a bookkeeping team to help manage that information for you.
Review Unpaid Bills From Vendors
Start by identifying any unpaid vendors. If you don’t already have an “unpaid vendor” folder, this would be a good time to do so. This folder will allow you to quickly and easily see billing dates, amounts due, and payment due dates.
Check Your Inventory Status
If you have an inventory, the end of the month is a good time to review what products are selling and which ones are not. Comparing the numbers month to month will help you make any adjustments in terms of markdowns and restocking.
Compare Your Profit and Loss Against Your Budget
Set some time apart to compare your Profit and Loss Statement with your monthly budget. Doing this will help you identify where you are spending and if you are spending more or less than you are supposed to.
Review IRS Forms and Tax Returns
Remember to report the annual earnings of your full-time employees (W-2s) and mail them copies of their tax forms. This is also the time to review your business’ full-year financial report. Make sure to review these reports before signing off on your tax return to avoid any inaccuracies. Handling this type of detailed information can be daunting. Consider finding a trusted provider to take care of your needs.
Maintaining the financial details of a business is complex. It will definitely require you to do more than what we have provided on this list. Our team of bookkeepers can help you stay organized and on top of your finances year-round. Get in contact with one of our team members today to see how we can support you!