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Your accounting checklist

Nip cash flow problems with timely and accurate accounting.
By Henry Ong |

The best accounting policies are those developed under the watchful eye of the business owner. You don’t need to do the bookkeeping work yourself, but you must understand the basics of the accounting process and should be able to interpret financial statements. It is very important for you to regularly work with your bookkeeper in managing your finances. Remember, the more involved you are, the better your accounting will be.

 

On a daily basis, you need to check the daily summary of your sales and cash receipts. The total sales for the day may be a combination of receivables, which are what your customers owe you, and of cash sales from outright transactions. You should also check if the cash on hand and the bank balance by end of the day are all properly accounted for.

 

Do this by reviewing your cash position report where all the cash in and cash out transactions for the day are recorded. It is possible that some cash collections for the day may not all be deposited in the bank or kept on hand because some of the cash might have been used to pay expenses or salaries. In this case, you will need to do some adjustments to record the correct amount.

 

Every weekend, you need to check your accounts receivable list to see which of your customers are not paying on time. You can give your customers a telephone call, pay them a visit, or write them a letter—whichever you think would be most effective to get them to pay you.


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