As a small business owner, it is important to stay on top of your financial transactions. This means tracking every sale and expense, in order to keep your business’ finances organised. However, this can feel overwhelming when you first get started!
Daily Business Transactions
- Customer invoices
- Supplier invoices
- Banking transactions
- Customer cheques or deposit slips
Month End Transactions
At the end of each month, you will also need to track some additional transactions. These include:
- Bank reconciliation
- Accounts receivable – debtors
- Accounts payable – creditors
- Cheques and deposit registers
- Sales report
- Stock ageing report
- Payroll register
- Monthly Profit & Loss – (Income and Expenditure Statement)
- Balance sheet
Tracking these transactions will give you a clear picture of your business’ financial health. This way, you can identify any areas where you may need to make changes or improvements. You should also compare these transactions against the previous month, as well as the same month last year, to get a clear picture of your business’ growth.
Year-End Financial Transactions
At the end of the year, you will need to track some additional financial transactions. These include your annual:
- Profit & Loss – (Income and Expenditure Statement)
- Balance sheet
- Cash flow statement
These documents will give you a good indication of your business’ financial health for the year.
Cloud Accounting Software
With cloud accounting software, you can automate invoices, upload receipts via your smartphone, keep an eye on cash flow and generate detailed financial reports with the click of a button.
There are many different cloud accounting software options available. Some of the most popular ones include:
Each of these software options has different features and pricing plans. It’s best to speak to your accountant or financial advisor about the program and subscription package that best suits the needs of your business.
Having accurate figures to hand keeps you full appraised of your business’ financial health.
Opting just to have your book-keeper or accountant produce year end accounts can risk missing a problem from the onset