Bookkeeping is a crucial part of any business. That said, many business owners consider this management and compliance facet of an organization a cumbersome and tedious task since it takes up lots of time.

Rushing this non-revenue generating process to meet tax deadlines can easily cause irregularities and inaccuracy in your books. Besides the concern of unavailability of timely data, business need efficient bookkeeping functionalities for accurate decision-making.

Staying on top of bookkeeping tasks throughout the year thereby helps keep the books in order and can also be the key to staying organized and understanding how your business is performing.

Let’s discuss some of the bookkeeping tasks for every time of the year.

1. Recurrent Bookkeeping Tasks

It’s important to stay on top of your bookkeeping tasks on an ongoing basis to keep your books accurate and up to date. Recurrent bookkeeping tasks include:

  • Reconciling accounts—this step ensures that your records agree with the bank’s records and that all transactions are accounted for.
  • Creating invoices—points to recording and billing for services rendered or products sold. It’s important to see to it that all bills are paid on time and invoices are sent out promptly to support a healthy cash flow.
  • Recording expenses—tracking all the money that comes in and out of the business.

Make sure you set aside time each week or month to review and update your books, and don’t be afraid to ask for help if you need it. Good bookkeeping habits can be the difference between success and failure in business.

2. Tax Planning

Good bookkeeping practices are essential for businesses of any size, but they’re especially important for small businesses. Keeping accurate records of your income and expenses can help you avoid problems with the IRS, like penalties and audits. Such a move also helps you maximize your deductions and take advantage of any available tax credits or incentives.

Your records should include all income and expenses and receipts for purchases made on behalf of your business. Going through your expenses line-by-line can help you uncover deductions you may have overlooked, such as the cost of travel, entertainment, and other business-related items.

Need help filing your taxes or understanding the laws? Don’t hesitate to ask for professional support.

3. Compiling Financial Year Statements

Creating and compiling financial year statements is an important part of staying on top of bookkeeping. A financial year statement is a report that shows a company’s financial performance over a certain period. The statement includes income, expenses, profits, losses, and other important financial data.

These statements provide a concise overview of your financial performance and progress over the course of a year. This information can be used to analyze the financial health of your business, identify areas of improvement, and develop strategies for the future.

An accurate financial year statement is an invaluable tool for tracking your budget and monitoring your financial goals. To create an accurate financial year statement, you’ll need to gather all of your financial information from the past year. This can include income statements, balance sheets, bank statements, and other documents. Once you have all the information, you’ll need to enter it into a financial statement template and check for any errors.

Tip: Preparing a financial year statement requires a thorough understanding of the company’s financials, which should be done by a professional accountant.

Let Experts Handle All Your Yearly Bookkeeping Needs

Savvy business owners understand that bookkeeping is not a one-time task but an ongoing process requiring continual attention. Stay on top of your bookkeeping needs with professional help from Goode Bookkeeping & Consulting.