Business owners’ to-do lists are quite lengthy. But even with a long list, there are accounting tasks that can’t be put off.
Hiring a business bookkeeper can help you manage some of these accounting tasks. But even so, as a business owner, it’s your responsibility to keep up.
Here are some of what business owners need to do to keep up with accounting.
Keep up with bank feeds
Modern software has made it easier to keep up with your banking tasks. But you still have to take some action.
According to Fundera, “Bank feeds, which connect your online banking data to your accounting system, have dramatically streamlined the accounting process. If you log in to your accounting system each morning and work your bank feeds, you will find you spend mere moments a day on this accounting task.”
Don’t lose track of what you owe vendors
Every business owner should keep up with what the business owes vendors, and when.
“Keep a record of each of your vendors that includes billing dates, amounts due and payment due date. If vendors offer discounts for early payment, you may want to take advantage of that if you have the cash available,” according to Quickbooks.
Track your bank account
Just because you’ve checked your bank feed doesn’t mean your banking is done for the day. You’ll also want to check your online account information.
As Fundera points out, “Only settled transactions come through in the bank feeds. Most banks settle at close of business each day, meaning any transactions that occurred overnight won’t appear in your bank feed until the following day (and sometimes it can take a couple of days for transactions to settle). Your online banking, though, reflects your pending transactions and the effect those have on your account balance.”
Staying on top of your account information can also help you avoid an overdrawn account or take steps to remedy fraud, should the worst happen.