Keep an eye on these financial management basics, from invoicing to end-of-year planning
As you run your business, you may be focusing on the things that are more enjoyable, while putting off the tasks that can be tedious, like accounting. But if you want your company to be successful, you have to pay attention to financial management on a regular basis.
Here are five accounting tasks that can’t be ignored:
If you don’t send invoices to your clients in a timely manner, your cash flow will be severely limited. Make sure to remind clients of agreed-upon payment terms, such as 30 days from receipt and consider offering discounts for those who pay early. For accounts payable, set up a calendar with reminders for when each vendor invoice is due, so you won’t miss making a single payment.
You’ll need to plan carefully to be sure that employee paychecks are distributed or deposited on time. In addition to keeping up with hours worked, accrued leave and voluntary deductions, you’ll need to monitor payroll changes for both new and existing employees and be sure local, state and federal taxes are submitted correctly.
Reviewing your cash flow
Even if you have help managing your company’s finances from an employee or an accountant, you should make a habit of looking at your company’s cash flow every week. Seeing everything that’s coming in and going out should give you a clear sense of where your company stands. Plus, matching your company’s cash to its daily receipts can help you detect fraud and theft as soon as possible.
Preparing for the end of the year
No matter what the season, you should be taking steps to be ready for tax time. Throughout the year, you may need to complete forms, make tax payments and check to make sure everything is in order for your employees. You’ll also want to keep up with tax code changes that can affect your company.
Talking to your accountant
Make time for regular conversations with the people who manage your company’s finances. Their advice can be invaluable when you’re making business decisions and planning for the future.
While these accounting tasks can’t be ignored, you don’t have to handle them all on your own. When you work with outsourced accountants, you’ll get help from experts with specialized financial knowledge.