When your small business accounting is working effectively, your strategic decision-making is powered by solid financial data. However, there's a lot to keep an eye on when it comes to small business finance. That's why it's crucial you do some essential tasks on a regular basis.

Daily accounting tasks checklist

1) Record and deposit payments

Some businesses make lots of smaller transactions every day, while others take large payments on a less frequent basis.

However it works in your company, record payments as soon as possible after you receive them, whether in-person in cash or via bank transfer on the back of an invoice.

Don't hang on to cash and cheques – get them to the bank so your accounts are where they should be and you have the power to invest.

Essential daily accounting tasks include recording transactions and depositing payments.Recording transactions and depositing cash payments are essential daily accounting tasks.

2) Reconcile payments

Not every payment arrives with a clear explanation. As a result, it's best to reconcile what you've logged in your accounts with what's arrived in your bank account on a regular basis while it's fresh in your mind.

That way, it's much easier to identify amounts you don't know anything about, and work out what they could be related to. 

This is also an excellent opportunity to categorise payments if required – such as logging them against a particular project.

3) Update your financial data

The best accounting software packages update and present your financial data for you at least once a day but often more frequently.

However, even if you have to manually update your data, doing so every day allows you to spot inaccuracies or cause for concern as quickly as possible. 

Letting several weeks pass by without looking at your income and expenditure totals could lead to some very nasty surprises.

4) Maintain your inventory

While this may not seem like an accounting task, good inventory management is key to managing your money.

If you want to re-order stock, you must have the funds available to do so. Running out of stock could lose you a number of sales. Ordering excess stock unnecessarily because your inventory's out of date is another cost you just don't need.

Again, this task is made much easier with integrated accounting and inventory software.

Managing sales is easier with an up-to-date inventory.Keeping your inventory up-to-date is crucial for keeping sales flowing.

5) Pay your invoices

You'll often receive payments terms of 30 or 60 days. However, when you settle early you may receive a discount or boost your reputation amongst suppliers.

Checking your invoices every day also gives you ample time to query errors before the payment is due, or speak to your colleagues about what's been received.

Weekly and monthly accounting tasks

There are lots of accounting tasks that are essential to stay on top of on a less regular basis.

  • Process staff timesheets and payroll – You're unlikely to remunerate your staff every day but you still need to upload and check this data regularly to make sure payroll runs smoothly.
  • Invoice your clients – How frequently you go through the invoicing process depends on the number of clients you work with. Don't leave it too long though, as crucial information is quickly forgotten and it doesn't help your cash flow. 
  • Chase unpaid bills – Talking of cash flow, it's one of the biggest reasons small businesses fail. If your clients don't pay, you can't buy new stock or cover other expenses. Give them a nudge every few days so they don't forget about you.
  • Review your finances with an accountant – Qualified accountants do more than log payments. They look at the bigger picture, advising you strategically and ensuring you meet tax obligations. See them at least once a month so they can keep a close eye on your finances. 

No matter how frequently you carry out essential accounting tasks, the whole process is made much easier with professional accounting software supporting you.

Advanced Business Manager's integrated accounting software ensures all your systems communicate effectively so you're always up to speed. Request a free demo to find out more about how we can help.