Monthly Accounting Tasks for Small Businesses

By William Richard On Jun 11, 2019

Accounting for small businesses is a pivotal part of an activity that is often overlooked by those who are just getting started. Many people avoid accounting courses like the plague, and this aspect of business certainly has a negative connotation. Thoughts of older gentlemen wearing green visors while vigorously typing away at financial calculators represent the traditional image of an accountant. With online accounting software, these stereotypes are far from how the accountant of the 21^st century appears. With these programs, anyone is capable of learning how to perform essential functions as they relate to accounting. Small business accounting services help people around the world, and this is true for Long Island, NY, also. Many firms can help you perform small business accounting long island ny.

Table of Contents

Balancing Your Business Checkbook

The reconciliation process at the end of each month is one of the most critical accounting tasks. Ensuring your beginning balance for the month is in-line with the ending balance for the month is vital. Reconciliations involve assessing each withdrawal and deposit on the proper date. Online business checking accounts allow you to check a small reconcile button after these entries appear in your software of choice. It is essential to make sure your bank reconciliation balances before moving forward with the next month. The entire accounting cycle becomes even more difficult if this information is not accurate.

Analyzing Inventory

If you are running a small service-based business, be thankful that you do not have to keep track of inventory. However, if you have a product-based business, it is pivotal for you to keep an accurate count of stock at all times. In this circumstance, your inventory is your business and must be adequately accounted for. Receipts for inventory purchases should be kept to assess the proper amount of cost of goods sold for each sale. Appropriate entries should be created for these product sales throughout the month and should reflect the proper inventory count on-hand.