Accounting Checklist For Small Businesses In NYC

Businesses that don’t do accounting are doomed to fail. Start-up businesses need to know how their accounting functions have to be done. It is very important to learn and form the appropriate habits of recording and performing the accounting functions so that the documents and reports stay organized and the information is ready for use anytime.

There various accounting functions that you have to consider in managing your finances. Basic duties include:

  • a realistic plan for your budget
  • recording transactions correctly
  • regularly review of the transactions and results  

Be consistent in keeping an organized system of filing your documents and files. If you are planning to do the business reports that will assess your fiscal health, be comfortable with the balance sheet, cash flow statement, and the income sheet. They are your friends whenever you need to comply with accounting regulations.

Here is a checklist of the accounting functions that you need to do daily, weekly or regularly. It is always best to develop a habit of keeping your accounting system updated.

For your daily accounting functions:

  • Check the cash as it fuels your business. Never be out of cash for a long time and you must always have cash on hand.
  • If you do daily transactions, record them daily or they will pile up.  Have a system in place for this specific task. Use excel sheets or you may have Quickbooks. Whichever you prefer, controlling always outweighs the cost.

For your weekly accounting functions:

  • Keep a record of all the transactions that you have during the week such as the cash received from customers, the bills you send to them, the payment and vouchers for vendors, and more.
  • Always keep records and file the receipts. All invoices received and sent must be on file for checking as needed.
  • Review your payable accounts and make sure that you attend to them. Check the accounts receivables folder to ensure that you have received collections on time. If not, it is time to make follow-up calls.
  • When you have new transactions, prepare and send invoices. Make sure that each invoice states the payment terms and the due date. If the payable is due after 30 days, your invoice should state “Net 30” otherwise, without a clear due date,  you might not be paid promptly  and you have no way of forecasting your revenue for the month
  • Manage your cash flow as this is a critical aspect of your business. Accounting has always played a vital role in any business regardless of what size it is.

These daily and weekly accounting functions need to be promptly attended to because the monitoring of the cash flow depends on an organized accounting system.

If you can’t handle the accounting yourself, make sure you get an accountant to do it for you. without a set accounting information and system in place, you will have difficulties in managing the financial aspect of your business and are setting yourself up for failure

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