Managing Accountancy: Day-to-Day Guide to Accountancy Tasks – Provided by Prestige Business Management
Running a business can be difficult, time-consuming and at times full of drudgery. You get into it because you want to do what you do best, but a business has a whole range of different tasks that takes time away from running your business and building great products and services.
Finance is one such area. Not everyone is a born accountant. So, whilst you may be the greatest IT contractor or running a great web service or boutique gift store, you may not have the greatest understanding of accountancy deadlines and tasks.
At Prestige Business Management we understand. This handy guide is designed to help outline key areas and tasks you need to focus on to help make your business finances run smoothly.
Things You Need to Do Daily
This is the absolute basic – you’re probably already doing it but it’s good to get the basics done and dusted.
- Always Check Your Business Bank Account Daily
Your cash is what helps you runs your business. So, every day you need to know what your bank account cash position. You need to know this daily because an unpaid invoice or some other ‘curve-ball’ could create problems. Every day you need to know what your cash position is.
Things You Need to Do Weekly
On a weekly basis, you need to undertake a score of business tasks. These are vital for the on-going financial operation of your business. They include:
- Financial Transaction Recording
- Filing Documents, Invoices & Receipts
- Review ‘Outstanding’ Payments from Clients or Customers
- Pay Your Bills
- Send Out Invoices
You need to record all transactions – this means recording all the payments made and received in the course of ‘doing businesses. By recording these transactions either into an Excel sheet or into QuickBooks Self Employed edition, you can understand how your business is operating as a business concern. You also need to file all documents from the tax office, file all receipts and invoices. You can use smart OCR scanners – like the one offered by Prestige Business Management – to help digitise your recording and help make your finances paperless.
After doing these weekly basics, you then need to move away from those who have paid to those who haven’t paid. You should look at all outstanding payments and chase them on a weekly basis. Then you should practice what you preach by paying your own invoices and bills in a timely manner. On a weekly basis you should also focus on sending out your own invoices. This will help build a solid process in which invoices are generated and paid which means you also need to evaluate your cash flow projections on a week-by-week basis helping you to understand how your business is growing.
Things You Need to Do Monthly
Monthly, you company requires further financial and accountancy tasks to be completed. These include:
- Analysing your stock/inventory
- Balancing your Cheque Book
- Review ‘Past Due’ Overdue Payments
- Pay yourself, your workers and your tax
- Review your Business’s monthly Profit & Loss Accounts
These tasks help you understand the success/failure of your business as an organisation. By understanding your inventory flow, balancing of your accounts, understanding overdue payments and how they impact your cash flow along with outgoings like wages/tax payments you can then review your business profit and loss statement with a clear vision – you understand the issues, understand the future strategy and can use this information to help propel your business to even greater levels of success.
Things You Need to Do Quarterly and Annually
Most businesses work on a day-to-day, week-to-week and month-to-month basis. However, there are tasks that are either quarterly or annually that are crucial in running a successful business. They include:
- Quarterly or Annual Payments to Inland Revenue for Taxes or VAT
- Quarterly and Annual Reviews of Profit and Loss and Payroll costs
- Review your Annual Business Profit & Loss Statement
These tasks are crucial in helping you to understand the journey your business is undergoing. Your quarterly or annual payments to the Inland Revenue reflect your success and as such you need to understand the dynamics of this cost outlay. In addition, by constantly reviewing your business profit and loss, your inventory and costs, you can understand how you can find efficiencies and identify issues that require growth strategies.
How Prestige Business Management Can Help You?
By following this guide, you understand the conceptual framework that underpins the 365-day journey that is for you the task of running your own business. The daily tasks, the weekly tasks, the monthly tasks and those quarterly and annual tasks are all interconnected and by using the right software, the right format and the right accountancy service provider, you can find success. Why not get in touch with Prestige Business Management today?