General Ledger – The Daily Grind Always document your accounting process. This will save your tax-preparer time, which will save you money because less time will be spent on asking questions about the details in your general ledger balances. The documentation of the accounting process will provide the answers and this will make correcting any account balances much easier, because the process can be easily identified and corrected. You should be consistent in your process as well as be consistent in regularly recording transactions.
” A ‘Scan’ In Time…..” Scanners are inexpensive and readily available: Invest in one! Receipts, invoices, and other paper documents tend to fade over time and become illegible. Why not prepare for a natural disaster, as well as save time by making document and file-sharing a breeze, not to mention, your office will be paperless and clutter-free.
Passing the Test At the end of an accounting period, you need to test to find out if you entered all transactions in the books accurately. Reconciling will help maintain a balanced set of records. Bank statements and credit card statements need regular review and monitoring. A monthly reconciliation helps you identify any unusual transactions that might be caused by fraud or accounting errors.
Regular Basic Financial Reports After well documenting the process, entering all transactions, scanning the supporting documents, reconciling all bank statements and credit card statements…..the final step in closing out an accounting monthly cycle is to create or run the basic financial reports. Even if they do not use any of the QuickBooks accounting software, most successful entrepreneurs, managers, etc., need to review the balance sheet and profit and loss statement on a regular basis, in order to make sound cash-flow related decisions.
Help! Help! Help! Know when to ask for help. Let’s face it, you are NOT superwoman or superman! Do not hesitate to get professional help, whether it be hiring a bookkeeper, calling in a QuickBooks expert, or retaining a Certified Public Accountant. Having someone else be responsible for the bookkeeping is great and will give an owner more free time to focus in other areas of the business. A Pro-Advisor will help you maintain accurate bookkeeping and financial records in your QuickBooks desktop or online accounting software, as well as troubleshoot accounts not in balance. A Certified Public Accountant and other tax professionals will advise on matters that would directly affect your tax liability and will help you plan for tax payments.