6 Monthly Accounting Services and Tasks Every Business Should Do

For every business, organization and structure is important in making sure that operations continue to run smoothly. Part of being a well-managed company is having proper accounting procedures to help you assess the health of your cash flow and operations.

In this article, we want to talk about the importance of handling the accounting for your business. Below is a list of important tasks that we recommend should take place every single month.

1. Balancing Your Business Accounts
Make sure your bookkeeping system has properly tracked all incoming revenue and outgoing expenses. Your business banking accounts (checking, credit, savings) should be accurate, so you know exactly what you have available to avoid overextending your spending.

2. Review Your Inventory
If you are a business dealing with an inventory of products, then you want to do a full monthly assessment of your inventory. Determine what products you may need to reorder and which unsold items need to be marked down for clearance. A monthly inventory review will make sure you always have what you need in stock and help you understand how your products are selling.

3. Run a Report on Past-Due (“Aged”) Receivables
You will want to have an “aging” column set up in your books, so you can separate open invoices based on the number of days a bill is past due. You will be able to see what customer/vendor payments are still outstanding. Use the beginning of the following month to send out reminders and overdue invoices to anyone who owes money.

4. Payroll and Tax Payments Review
If you have employees, review the payroll summary monthly to avoid errors. Make sure all payroll tax requirements (federal, state and local) are met. The proper tax payments for income tax, social security, Medicare and disability need to be reviewed at least once a month and proper withholdings should be made within each payroll period.

5. Compare Actual Profit/Loss with Budget and Prior Years
Review your profit and loss statement, or income statement, for each month and year-to-date. See how it measures up against your monthly, quarterly or annual budget. Compare the numbers to previous years to determine year-to-year growth by month.

6. Compare Month-End Balance Sheet with the Prior Period
Carefully look at the balance sheet for the current month and compare it with previous months. See which numbers are fluctuating and do what you can to understand why certain numbers are increasing or decreasing. This is key to refining your business strategy and striving for a better financial future.

Ultimately, accounting is an everyday priority, and the monthly tasks are very important to the health of your business. Ferguson, Timar & Company offers accounting services to businesses of all sizes. Rather than trying to figure it all out yourself, you can outsource your accounting services to our team of expert CPAs. Contact Ferguson, Timar & Company today for more information about our business accounting services.

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