What your small business should be doing each month

Written by Nathan Watt

Another month is over, and you’re on to the next one, days and weeks roll into each other and before you know it, the year is over, and you look to the bank accounts to see if you’ve “made any money”.  Sound familiar?

Then your accountant gets started on your tax returns, and has a heap of questions, What’s this? Where’s that? Why doesn’t this reconcile? What was this amount for? Have you got this statement? and you’re thinking I don’t know, the bookkeeper did all that, I can’t remember last week let alone 12 months ago. How am I supposed to know what the business did this time last year? Do these accountants know what it’s like to run a business? Do they ever get out from behind that desk? Next they’ll tell me I need to pay tax, but I don’t have any more cash.

What if I could tell you there’s a better way? A way where you do have all these answers, and you wouldn’t have to go looking?  A way that would not only help you run a better business, have a better understanding of your finances and potentially reduce your accounting fees?

How does that sound? Well there is, and I’m going to tell you what it is right now.

Drumroll please:

Systems and processes.

More precisely it’s a “month end process” and no, it’s not going to cost you anything. So keep reading;

A month end process is the process where you finalise your accounting for the preceding month, in other words, you’ve;

  • issued all your invoices to customers,
  • got all the expenses in from your suppliers and
  • the bank has released all the bank statements.

 Now’s the time to wrap all this up into a nice little package before you move on. This package then serves as the basis for that month’s financial analysis to answer the question, “how’d we do?, it’ll flag any transactions that look out of place, tell you when things don’t add up and keep all the supporting documents in a nice, easy to find place to give to your accountant.

Ok, sounds good, what exactly do we do?

  1. Click this, enter your details and I’ll email you a month end checklist
  2. Follow the checklist
  3. Read our next blog on analysing this data.

Simples.

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