Reasonably up-to-date books can be used to make financial decisions. Business can make changes and to seize opportunities. They can also show lenders and investors that the business is serious about doing things right. But even with computers and systems that share electronic data, the business’ books will still be weeks if not months behind. For most small and medium-sized businesses the books have to be tended to daily, but the actual bookkeeping tasks can be handled monthly or quarterly.
Quarterly Bookkeeping Tasks
There are several bookkeeping tasks that have to be handled quarterly. At a minimum, this includes:
- Preparing and filing quarterly payroll taxes.
- In most states, preparing and filing sales taxes.
These tasks can help avoid late penalties and avoid further inquiries by the IRS and/or state governments.
It is also advisable to perform a quarterly review of the business’ books. If monthly financials have been prepared, the monthly reports should be consolidated into quarterly reports and any discrepancies should be fixed.
Businesses should also review accounting processes and other items quarterly, such as insurance, retirement plans, employee compensation, etc.
Last, businesses with inventory should take a physical count of the inventory. The related journal entries should be made to update the inventory accounts.
Annual Bookkeeping Tasks
There are several bookkeeping tasks that can be handled once a year. This includes:
- Closing the books by taking the quarterly or monthly financials and consolidating them into annual reports.
- The annual reports should be evaluated and any discrepancies fixed.
- The final annual reports should be evaluated for tax efficiencies and planning.
- After these changes, the final reports should be distributed to the business owners.
Having distributed the annual financials, the business owners and/or management should meet to discuss the business, its operations, and set expectations and budgets for the new year.
These regular bookkeeping tasks can help ensure that the business stays on track. While it takes a sustained and dedicated effort to keep the books current, the benefit is well worth the effort.
Get Help With Your Business
We help businesses across the country with taxes and payroll services, but we focus on providing bookkeeping in Houston, Texas. Call us today to see how we can help, (832) 915-1040.