Small Business Financial Status Checklist

Keeping your financial records up to date won’t be a problem
if you do what is necessary on a regular basis. Though particular
accounting needs may vary somewhat, the following checklist will
help you understand the most common tasks required to maintain
accurate accounting records.
Daily:
1. Total all cash on hand.
2. Record income. Enter a summary of sales and cash receipts in
an income ledger.
3. Record all payments made by cash or check.
4. Enter deposits in your business checkbook to keep the balance
current.
5. Record inventory, adding any new items received.

Weekly:
1. Review accounts receivable, and take action to collect from
slow payers.
2. Review accounts payable, remembering to take advantage of
discounts.
3. Prepare payroll. (Records should include name and address of
employee, Social Security number, number of exemptions, date
ending the pay period, hours worked, rate of pay, total wages,
deductions, net pay and check number.)
4. Deduct items sold from inventory, adjusting records to reflect
the week’s sales.

Monthly:
1. Balance checkbook. Reconcile your checking account records to
your bank statements to ensure that both sets of records are in
agreement.
2. Total all ledgers. Compute monthly totals for sales, expenses
and payroll.
3. Make tax deposits. Report and remit withheld employee
income taxes and FICA taxes. Also file and remit any federal or
state income taxes due.
4. Age accounts receivable. Update your unpaid accounts, listing
them by length of time on the books, i.e., 30, 60 or 90 days. Use
this list to discover which accounts require extra collection
attention.
5. Review inventory. Check inventory levels to see which items
aren’t moving so you can replace them with new stock.
6. Reconcile petty cash. Make sure the actual cash, plus the
total of the paid-out receipts for expenses from petty cash, are
equal to the starting balance. Replenish if necessary.

Quarterly:
1. File estimated tax returns. File federal and state estimated
income taxes.
2. Remit sales taxes. If required, fill out a state sales tax
report and send it in along with a check for the amount of sales
tax you’ve collected. You may be required to remit sales taxes
monthly or annually instead of quarterly, depending on the
amounts involved.
3. Prepare income statement. This will reflect the sales,
expenses and profit for that quarter and for the year to date.
Many larger businesses generate this report (as well as the
balance sheet and cash flow statement below) monthly as well as
quarterly.
4. Prepare balance sheet. This will indicate the financial
position of the business at the end of the quarter.
5. Prepare cash flow statement. This will reflect the cash
activity and ending position for the quarter.

Annually:
1. Total all ledgers. Compute yearly totals for sales, expenses
and payroll.
2. Prepare income statement. This will reflect the sales,
expenses and profit for the year.
3. Prepare balance sheet. This will indicate the financial
position of the business at the end of the year.
4. Prepare cash flow statement. This will indicate the cash
activity and ending position of the business at the end of the
year.
5. Send out 1099 forms. Complete and mail a 1099 form (Statement
for Recipients of Miscellaneous Income) to each independent
contractor who earned more than $600 from you in the previous
year.
6. Send out W-2 forms. Complete and mail a W-2 form to each
employee who worked for you in the previous year.
7. Assemble tax papers. Pull together all the documentation
you’re going to need for filing your income taxes.
8. Meet with your accountant. Turn over your tax documentation
and set up a time to discuss your financial condition and tax
strategy for the coming year.
9. Set up new books. Prepare for the coming year by setting up
your ledgers.

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SMB Reviews
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SMBReviews is committed to providing small and mid-sized business owners with the information and resources they need to select the best service or product for their company.

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