For any business to be a success, there are certain growth strategies that can’t be implemented without proper financial planning and accounting. One essential element to the health of a growing business is proper record keeping, especially when it comes to financial activities. However, there is much more involved in financial activities than just recording sales and expenses. Planning for growth requires a strategic plan right from the start. A successful plan might include gathering information, recording data, and analyzing financials as part of routine accounting.
Routine Accounting is described as the process of gathering, recording, and analyzing financial activities on a day-to-day or periodic basis. The process may involve having an accounting department or trusted firm in place to handle such tasks.
There are some tasks that can be performed on a daily basis to make accounting easier. These may involve a compilation and generation of daily reports, then checking them against the actual numbers. Daily posting of transactions into their respective ledgers is also crucial. A trusted CPA, when performing routine accounting, will note any errors when comparing report details with respective receipts, bank slips, checks, and credit card statements. This may be challenging when performed in-house because internal teams often get pulled into long-term planning. Seeking accounting services similar to the ones listed above can be a good solution.
On a weekly basis, the debit and credit accounts should be checked and updated appropriately. This would involve determining whether there are any outstanding payments to suppliers or pending invoices that need to be sent to debtors. Suspense accounts should only be used on a temporary basis. They are used to record transactions in which the proper account could not be determined at the time it was recorded. These accounts should be checked for accuracy and updated accordingly.
The best way to close a long busy month is to ensure that financial records are in good shape and up-to-date. This would involve tasks that include looking at sales and purchases accounts, reviewing the debtors and creditors ledger, and updating them accordingly. Bank accounts and credit card statements should also be revisited and reconciled so that accuracy is observed and maintained. Adjusting journal entries should be done in respective journals before the closing of business so that incomes and expenses are recorded in the correct accounting periods. Appropriate financial reports also need to be generated so that the current monthly reports can be compared to prior periods.
Benefits of Routine Accounting
The consistent adherence to the daily practice of financial record keeping is advantageous in more ways than one. It allows a business the ability to better manage cash flow and plan for growth and expansion. Here are some significant benefits to expect from routine accounting:
- Easier and less stressful account reconciliation
- Better accuracy in financial records
- Easy tracking of the financial standpoint of a business
- Avoid loss of resources and finances through early detection of errors
- Faster and less complex end-of-year audits
A Firm for Your Needs
At Cheryl Jefferson & Associates, we bring superior depth to routine accounting services. Though the work is routine, what we accomplish is not. In addition to reconciling bank and credit card accounts, we ensure that your business has clean ledgers, your QuickBooks is set up for your specific needs, and we try to ensure that you receive all appropriate tax credits.
Understanding that your organization’s requirements are our starting point, we exceed the routine if required. We customize and format accounting reports, according to your needs. Our routine accounting services are particularly popular with small and medium-sized businesses – and even startups – because we inject meaning into accounting.
When looking for a small business accounting firm that specializes in routine accounting, ask about the ongoing education their CPAs receive, how much training they provide in showing you how to identify common problems, and how they can help you become a more effective business owner.
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