If you’re new to running a small business, you’re not naturally organised, or you just hate finance jobs, it can be easy for your accounts to get on top of you. Of course, it’s much better if you can get on top of them. The best way to do this is to break your accounting tasks down into regular responsibilities. In this blog, we look at what you should be doing daily, weekly, monthly and annually so you can keep up to date with your finances.
Daily finance tasks
Daily tasks are all about the general running of your business. It’s important to keep things running smoothly so you can make reasoned financial decisions.
Every day you should review your cash position. This will show you whether you have enough funds to meet your business outgoings.
You should also record the invoices you receive, as this will make the payment process easier when it comes round. You don’t have to pay the invoices on the day they arrive – it is usually more efficient to do them in a block.
If you use financial software of any kind, it’s important to install updates as and when they appear. This will help you stay up to date, minimise the need to call the customer support line and keep all your finances running smoothly.
Weekly finance tasks
Weekly tasks enable you to spot problems before they become serious. Investing some regular time in your finances each week will also help you stay on top of paperwork, which will also help you Send out your weekly invoices, and pay the ones you receive.
Every week, you should review and reconcile bank accounts and credit card accounts so you know what you have spent and what you have received.
You must send out your weekly invoices, and pay the ones you receive. If there are any missing, now is the time to spot the gaps and chase them up. Delaying payments can send your budgeting out of the window.
It’s a good idea to log the receipts for your expenses on a weekly basis so you don’t end up with a disordered bundle you can’t face dealing with!
Monthly finance tasks
Many monthly tasks contribute to the bigger picture, like meeting your responsibilities to your employees and chasing up invoices.
Every month, you must pay your employees and ensure the payroll tax is paid too. This is the kind of task you can outsource if you don’t feel confident about it or it eats into your time too much.
Month-end is the time to review your debtors and creditors, and chase up payment if necessary.
Quarterly finance tasks
Each quarter, you should review your profits and losses so you understand your business position, and produce your management accounts.
It’s a good idea to set financial goals for each quarter to keep you on track too.
Annual finance tasks
Annual financial responsibilities are the serious ones. They don’t just matter to you and your business – they relate to your obligations as a UK business owner.
At the end of the financial year (31st March) you must submit your annual accounts to HMRC and Companies House.
You should also review your annual budget. This will help you manage your spending and savings, and help you work towards your long-term financial goals.
Outsource your accounting
Our accounting experts love helping busy business owners manage their finances. To find out more, get in touch today on 01483 332 220 – we’d love to hear from you.