A Complete Checklist For Your Bookkeeper

Any business, regardless of size, needs a bookkeeping checklist to ensure that everything is completed on time. To keep your business functioning effectively, accurate and timely bookkeeping is required to keep your business running smoothly. And when it comes to obtaining finance and filing taxes, your bookkeeping is vital.

At Balance & Foster Inc., we understand how time-consuming running a business can be; therefore, we want to make sure that when you employ a bookkeeper, they can manage all of your bookkeeping needs.

As a result, we’ve created a handy checklist for your hired bookkeeper to use so that they may get to work on your accounts as soon as possible. Using our checklist will improve the accuracy and efficiency of your company’s books significantly.

A. Daily bookkeeping tasks

1. Review cash position: At the beginning and end of each day, you should check business bank account balances and petty cash to ensure enough money is on hand for making change for walk-in clients who are making payments for your services or to be used for last-minute small office supplies.

2. Record and categorize all incoming and outgoing payments: Record every transaction for the day. These transactions include all money received for services and all money paid out for the day.

3. Make deposits: Deposit all cash at the end of the day and record the deposit.

B. Weekly bookkeeping tasks

1. Prepare and send invoices: Send out any invoices for the week. Make sure to include a due date, which is beneficial when forecasting revenue.

2. Pay vendors: Review your accounts payable and pay your suppliers on time to avoid late fees. Make payments early if possible, especially if the vendor offers an early payment discount.

Filing. File a copy of all invoices sent, cash payments, and cash receipts with a physical file or scan it into bookkeeping software. These organized files will make it much easier when it’s time to do taxes.

3. Review projected cash flow: Be sure to have a statement in place that shows your current cash flow, expected cash payments, and cash receipts. Make sure you have enough money reserved to pay employees, bills, and vendors in the coming weeks and months.

C. Monthly bookkeeping tasks

1. Balance and reconcile business accounts: You need to make sure you are working with an accurate cash flow balance. Reconciling your statements every month allows you to catch errors made by either you or the bank before it snowballs into a larger issue.

2. Process payroll: You may pay your employees at the end of the month or twice a month.

Approve tax payments, such as Source Deductions due on the 15th of each month.

Check inventory status. Check the inventory of your office supplies every month, especially before peak times at the firm.

3. Review past due receivables: Review your aging column or report by the days past due so you can note the amount of outstanding customer payments. Send overdue statements or reminders, preferably at the beginning of the month, to anyone who owes you money.

4. Compare your income statement to your budget: Review your income statement for the current month and year to date and compare it to your monthly budget to see how the numbers compare. Consider making adjustments in the following months if necessary. If you don’t have a budget, compare the income statement to the prior year’s.

5. Review balance sheet: By comparing the month-end balance sheet to one from a prior period, you can note how your asset and liability management is going and if any adjustments are needed.

D. Quarterly bookkeeping tasks

1. Revise annual income forecast: Review revenue and expenses to note any trouble spots and make changes if needed to increase sales.

2. Quarterly sales tax: Some businesses are quarterly filers for HST; ensure the quarterly sales tax requirements are met.

3. Other taxes: Check to see if you need to report and pay WSIB, EHT, etc.

E. Annual bookkeeping tasks

1. Review past due accounts: Just as you did every month, you need to review outstanding customer payments and past due invoices to determine if you will continue to issue reminder notices, send them to a collection agency, or write them off.

2. Review office supplies and services: Review services to see if you want to change any plans for the next year to save money and do an inventory of office supplies to see if you can save money by buying in bulk.

3. Issue T4’s, T4A’s, and T5 to be sent out to employees and independent contractors reflecting their annual earnings: These forms are to be mailed by February 28.

4. Review financial reports for tax returns: Review all financial reports before year-end taxes are processed.

If you have any concerns about doing your books or need assistance with your business accounts, reach out to the tax accountants, advisors, and experts at Balance & Foster Inc., serving in Hamilton, ON. We deliver global capabilities with the “local” touch that brings world-class assurance, tax and consulting expertise to our clients through enduring relationships built on genuine understanding and trust. We offer tax/ accounting, trusts and estates, bookkeeping services, and more. We serve clients across Hamilton, St. Catharines, Niagara Falls, Toronto, Markham, Vaughan, Kitchener, London, and the surrounding areas. To learn more about our services, please click here. If you have a question, we’d love to hear from you. Please contact us here.