Finances are the life-blood of every business. Any business owner who allows their finances to lag behind will quickly discover that their business is on shaky ground.
There are a number of resources available to help business owners stay on top of their finances, despite the myriad of other tasks and responsibilities they must perform. Here is a clear summary of the financial tasks that should be completed at different points during a year of operations:
1. Daily Tasks
These daily tasks can help to keep your business’ finances current: gathering and sorting the mail, recording incoming cash as either an invoice payment or sales receipt, and stopping by the bank to make deposits.
2. Bi-Monthly Tasks
Bi-monthly tasks are normally completed on the 10th and 24th of every month. These tasks have a strict financial focus that will set the details in order for upcoming reports and budgeting. These tasks include:
- Entering bill details into QuickBooks.
- Gathering payroll information.
- Processing payroll.
- Classifying transactions.
- Analyzing balance sheets, including accounts payable and accounts receivable reports.
- Making Profit First bank transfers.
- Paying bills using online features.
- Submitting sales tax returns (this generally takes place on the 24th).
- Making any necessary collection efforts.
- Making adjusting journal entries.
3. Monthly Tasks
Business owners should set apart time to reconcile their accounts and review their time and expense sheets on the first of every month. After generating invoice reports and monthly reports, owners can analyze their operations, see their current financial standing, and start planning for the next several months.
4. Quarterly Tasks
Many financial tasks can take place on a quarterly basis, like reviewing 1099 documentation, holding tax planning sessions, and distributing profits. Quarterly reports should also be created and analyzed in light of quarterly goals.
5. Annual Tasks
Businesses must perform a number of large, encompassing tasks. Thankfully, many of these major responsibilities only come around once a year. In January, employers are to generate and distribute 1099s. February is the time to submit a tax package to a CPA and tax returns can be prepared and filed during March and April. Business owners get a nice, peaceful break before anticipating adjusting the annual budget in November and December.
Small Business Opportunity
If you would like the chance to start your own small business where you can test out these financial tips, we might have the opportunity you’re looking for. At HomeTown Values, we give you the training and mentorship you need to start a business that benefits your community and earns you money. For more information about our direct mail business opportunity, contact us today by giving us a call or filling out our contact form.