The Essential Bookkeeping Checklist
If you are starting a business or if you need to seriously evaluate your business finances follow these 10 steps to ensure you’re covering the essentials so you feel confident about your money management practices.
Get a system in place to record every transaction.
Choose the right cloud-based accounting system for your business so you can access and update your information from anywhere you have an internet connection with a desktop or mobile device. If you need helping knowing which program to choose, schedule a free consult with our team.
Make a list of all income sources and customers.
It’s important to know where you are receiving income from, for what and how (Payment source). Make sure you have the project and/or customer clearly identified with a list of services provided, products sold, or rental income received, and payment method used. You’ll be able to track this with most cloud-based accounting software programs available and should be something you consider when selecting the program with the right combination of customization, integration, and reporting options to work for your business.
Make a list of all expenses and suppliers/vendors.
It’s essential to record every expense, what it was for and the name of the supplier/vendor paid. You’ll also want to track assets purchased that need to be depreciated, insurance premiums, interest expenses, taxes paid. It’s important to clearly breakdown all of your expenses in detail.
Clarify what taxes you need to collect and remit.
Consult with your accountant and/or schedule a free consult with our team to discuss your specific business.
Create an invoicing template.
Set up your invoice in your accounting software with your business information, tax number (if applicable) and ensure you have fields set up to record all the contact details about the person and/or company you are invoicing.
Open a separate bank account for your business.
Keep your personal and business accounts separate including a credit card and/or line of credit.
Set up your payment processing system.
Ensure the methods you want to offer your customers to pay are properly set up and integrated with your business bank account. Always test the process before processing transactions using a new payment method.
Save a % of your income for taxes.
Set up a separate savings account for your business to save a % of your gross revenue (sales) each month for taxes.
Set a money date to check your bank accounts weekly.
Even if you only do your bookkeeping monthly, it’s important to stay on top of your financial position by checking your accounts weekly. Identify how much money you have, bills that need to be paid, transfers that may need to happen, etc.
Connect with a Certified Bookkeeper and Accountant.
Find a certified bookkeeper and accountant in your area that you can meet with on a quarterly and/or annual basis to go through your financials with you and make recommendations. We recommend working with a professional to advise you regarding tax savings or credits you can apply to your business and personal taxes along with helping you with your filing and/or tax remittances.