5 Accounting Tasks You Should Do Every Week
Accounting is hugely important for your business. But for many organisations, it seems like a pretty mammoth task. That will certainly be the case if you don’t keep on top of it. However, if you break things down into weekly tasks, it can become a lot more manageable. In this post, we look at 5 accounting tasks you should be doing every week to stay on top of your business’s finances.
1. Record transactions
The heart of a business’s accounts are the ingoings and outgoings. It’s important to keep on top of this each week, as it will soon stack up. Record all transactions, whether that’s invoicing customers, receiving their payments or paying out for services other companies provide to you. This includes the basics too, like rent, energy bills and staff payroll.
A basic excel spreadsheet may suffice for small start-up businesses, but it soon becomes necessary to invest in purpose built accounting software.
2. Filing receipts
As a business, it’s essential you keep a record of everything you pay for or receive. It’s also important that you can locate them when required, which is where a proper filing system comes in. Sort receipts and invoices alphabetically, using the name of the company who is sending or being sent money. Within each company’s file, it’s useful to sort documents by date, so the most recent receipts and statements are at the front.
As time goes on and you collate more and more documents, you will see the value of accounting software, which allows you to scan documents and eliminates the need for physical storage.
3. Unpaid invoices
There’s nothing worse than doing work without being paid for it. But sometimes, your clients will simply put paying invoices to the bottom of their pile. It’s worth reviewing which invoices are still unpaid at the start or end of each week. Chase them up with an email or phone call to remind clients that the payment is due. In most cases, you’ll find that they get straight to it to eliminate another job from their to do list.
Of course, your clients can’t pay for services without the right invoice. While you’re dealing with invoices, remember to check if there is any work that hasn’t been invoiced yet. Make sure you include a due date and payment method with clear itemised charges for your services or products.
4. Unpaid bills
You don’t want to be one of those clients that’s always late in paying. Not least because of the potential charges for late payment. It’s a good idea to review any unpaid suppliers or service providers on a weekly basis, checking when payments are due and how much you need to pay. Wherever possible, it’s best to pay as soon as you can – especially as some companies may offer an early payment discount.
5. Check projections
Business isn’t just about reviewing the past. It’s also crucial to review projections so you can effectively manage cash flow in the coming weeks and months. Create a spreadsheet detailing your expected income over the next week or month, along with any cash payments you anticipate. This includes your bills, suppliers or service providers and of course your employees.
We’ll take care of things
Taking things step by step on a weekly basis will help you manage your accounting workload more effectively. But sometimes, there just aren’t enough hours in the day. If that sounds familiar, UWM Accountants are here to help with a wide range of accounting services.
We’re a team of expert accountants in Leeds who can take care of everything from bookkeeping and payroll to VAT and tax planning. In short, we’ll make sure your accounts are in order and help your business flourish. Get in touch today to talk more about how we can help.