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Bookkeeping Tasks for Small Business

Bookkeeping Tasks for Small Business
Bookkeeping Tasks for Business

There are many bookkeeping tasks to complete as either a bookkeeper or small business owner. Complete bookkeeping duties on a daily, monthly, quarterly or annual basis, depending on what they are.

Getting into the routine of completing bookkeeping regularly can save the time and heartache of having to rush it when annual accounts are due, or management requests a report. It is also essential to keep on top of all sales and purchase invoices, ensuring an earlier settlement.

It is worth keeping either a diary or online calendar of all the deadlines you need to meet. It may include dates for pay run, end of year, scheduling payments, chasing customers, Vat return dates, paying taxes and when reports are required by management.

If you are looking for a career in bookkeeping, this list of duties will give you an idea of the work that you might get involved in either on your own or as part of a team.

Double Entry Bookkeeping with Accounting Software

Double entry bookkeeping is an essential part of accounting and is used to record transactions in a way that allows businesses to track their finances. It is the duty of a bookkeeper to post the financial transactions and keep them up to date and accurate.

Accounting software can help with double entry bookkeeping. It ensures that businesses have accurate financial records, which are essential for making sound business decisions.

QuickBooks Accounting Software Discount

Bookkeeping Tasks for Small Business

Daily, Weekly or Monthly Bookkeeping Duties

Dealing with Post and Emails

Each day it is worth checking post and emails; this will ensure that you keep on top of invoices and queries. If you handle all mail, you will need to distribute some to other employees.

Check your bank account

It is essential to know how much cash as a business owner or bookkeeper is in the bank account. It allows budgeting to understanding when payments can be made and check if customers have paid their invoices.

Reconcile Bank Account

Bank reconciliation ensures that all transactions are posted correctly to the accounts. Reconciliation of the bank account, savings and credit card should be completed regularly.

Prepare and Send Sales Invoices

Send sales invoices to the customer at the end of a job or on an agreed date; this may be a deposit or monthly invoice. The quicker the invoices are sent to the customer, the faster you should get paid.

Record Customer Receipts

When a customer pays a sales invoice, record the payment against the sales invoice in the accounting records. It will ensure that you do not chase a customer for an invoice already paid.

Banking Cash

Customers pay by cash; they will need banking regularly, ensuring that not too much money is on the premises at any time.

Credit Control – Accounts Receivable Ledger

One of the essential jobs is credit control. If you do not get paid by a customer on time, it can cause cash flow problems. Credit control procedures will need to be put in place and checked each day if invoices require chasing for payment. If customers do not pay on time, debt collection letters or court action may be needed.

Process Supplier Invoices

When receiving a supplier invoice, record it onto your accounting system and check that the details are correct. If you require authorisation from management, this is the time to obtain it. Any queries on a supplier invoice can be submitted.

Pay Bills to Suppliers

Paying suppliers on time is important, as you do not want to upset a supplier and get your credit cancelled. It is easier to have payment runs either weekly or monthly. Payments to suppliers may be either by direct debit, standing order, BACS, bank transfer or cheque.

Filing of Paperwork

Whether you file your transactions on paper or the computer, your filing should be kept up to date. Some accounting packages allow you to upload images of receipts to their software, which can save keeping hard copies. Scanning of documents, to update the computer system or email to customers or suppliers. Filing paperwork usually is by sales or purchases, then by customer or supplier name and then date.

Petty Cash

If the business purchases sundry items using cash, a petty cash system will need to be in place. A record of all transactions will be kept and updated to the accounting software. From the bank, withdraw cash when needed to top up.

Payroll

Employee’s details require updating and payroll run, either on a weekly fortnight or monthly basis. Payslips are distributed to the employees.

Review Cash Flow

Cash flow forecasting may be completed in either the short or long term. If a business has a tight cash flow, it may need to review the position daily. Other companies may require long term forecasting for either a year or more. It allows them to see if the business will be profitable and perhaps expand in the future.

Produce Financial Reports

There are two main financial reports the profit and loss statement and the balance sheet. The profit and loss statements will show the sales, overheads and expenses for the month. The balance sheet shows a snapshot of the business finances including assets and liabilities. The reports are essential for checking the financial health of a business.

Pay Taxes on Time

There are several different taxes, and depending on the company’s formation will depend on the taxes that need to be paid. A limited company in the UK may pay Corporation Tax, VAT and PAYE. A self-employed business will pay self-assessment tax (personal tax rather than business).

Perform a Stock Take

A stocktake can be done at any time but is required at year-end. It ensures that the stock held is equal to the stock in the accounts; if there is a difference, an adjustment by the journal can be made. Stock can also change in value.

Journal Entries

Any adjustments to the accounts will need to be entered using journals. There can be many reasons for journals, including accruals, prepayments, underpayments, bad debt and general adjustments.

Excel Spreadsheets

To help with producing reports, it is necessary to enter details into an Excel spreadsheet. It allows for calculations and sorting of data and can make figures easier to read.

Annual Bookkeeping Tasks

Produce Annual Accounts

It doesn’t matter if you are a limited company or self-employed you will need a set of accounts at year-end. A limited company will need them submitted to companies house and self-employed to HMRC. The reports should include profit and loss, a balance sheet and perhaps a trial balance.

Liaise with Accountant

As part of bookkeeping duties, there will be times during the year when questions may arise that you need to ask the accountant. If an accountant is required to produce annual accounts, you will need to prepare them and pass all the reports and paperwork to them. If you are using cloud accounting software, it is possible to invite them as a user or accountant.

Bookkeeper duties can vary from job to job. You may be required to do everything in one business and just a small section in others. You need to be prepared to deal with anything and any queries that may arise.

The most important thing in bookkeeping tasks is getting organised and keeping on top of the work.

If you want to know more about bookkeeping tasks read our bookkeeping basics section.

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