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What accounting tasks should every business prioritise?

Despite understanding the importance of keeping accurate accounts, a lot of firms still fail to prioritise these tasks. Sometimes, firms still manage to make a profit, but in most cases it’s an approach that causes serious issues. Eventually, failing to keep good accounts catches up with businesses in many different ways.

The adverse impact of neglecting accounting tasks

Some firms end up missing HMRC deadlines and are fined. Others realise too late, that they are about to run out of cash. In the worst case scenario, a firm can find itself unable to fulfil its next order because it cannot afford to buy the necessary raw materials to do so.

Tasks that need to be done daily

Although there are many different accounting tasks that need to be done, some are more important than others. The following are the ones you should be doing daily, or, at least weekly:

Update your bank feeds

If you have your online banking connected to your accounting system, make sure these are updated as often as possible. Get someone to check this every day.

Verify your bank balance

Every day, someone needs to look at your bank balance to verify it is more or less as it should be. This will ensure any rogue transactions are picked up and dealt with as soon as possible.

Log your expenses as you go

At the same time as updating the feeds, log the reason for each transaction. Better still, get into the habit of doing this as you spend the money.

There are apps that can help you to do this while you are on the go. It is all too easy to forget what you bought or why you paid someone, and the longer you leave it, the more likely it is to slip from your memory.

Back up your accounts system

All data should be backed up every day. Some firms even do it several times a day, which is a good habit to get into, but you need to make sure that the backups are very clearly labelled.

Log everyone’s hours

For most firms, paying their staff represents a significant cost. It’s a good idea to go through everyone’s timesheets at the end of the week and log their hours.

This is especially important at busy times, during which costs tend to escalate. It’s very easy not to realise this is happening and not have enough cash in the bank to cover your payroll. When you are busy, you will be relying on the goodwill of your staff to get you through, so you want to pay them on time to keep them happy.

Scan your documents and receipts every week

It’s a good idea to scan all of your receipts and documents as they arise, as this makes it less likely that they will go missing. If this is not possible, get it done last thing at night or first thing in the morning.

Keeping control

To ensure that these tasks are done, the management team has to lead by example. They also need to make it part of their daily routines to check the tasks are being completed.

Posted by Mark
October 30, 2018

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