Once you set up your books properly, it becomes time to keep up with the cash that flows in and out of your business. When we say “keep up” with your books, we actually mean that you need to trace each and every step. Business can move quickly and your bookkeeping needs to catch it all. But, what exactly should you be keeping up with?
This should go without saying! You must keep up with logging where your money goes, as well as where it comes from. In simple terms: your company’s sales and purchases. A single missing entry will throw your books off balance entirely. Consider downloading the mobile app so you can add entries on-the-go, setting up journal entry automation, and reconciling on a weekly basis.
Accounts Payable/Accounts Receivable
Deeper than just transactions, you should be analyzing your AP/AR regularly. Maintaining these will help ensure that cash will continue to flow into and out of your business. Keep up with paying bills by their deadline, as well as sending reminders to those whose invoices are past due.
If you are a larger company or have frequent employee turnaround, then don’t forget to update this in your books. Whether they are leaving or joining the team, ensure they are added or removed from the system in a timely fashion.
You must keep up with payroll. That’s all there is to it! Pay your employees their full checks on-time. Payroll roll has strict deadlines, so you must be diligent with this.
If your business carries an inventory, then this should be logged daily. Your inventory should be up-to-date at all times. If not, you could run out of products when you need them and won’t be able to order more until too late, which will cause back-ups for your business and disturb your cash flow.
For assistance keeping up with your books, contact Skynar Bookkeeping Services.