New Year Checklist for your business

Get your business off to a flying start for the year with this handy monthly checklist. Reviewing a monthly checklist can reduce accounting errors and ensure that you have control on the financial status of your business at any point in time. Businesses both large and small should be running good management checks at the end of every month. The Business Minder can step in to help you with setting up 'good management' checks for your business. In addition to managing expenses, business owners must also maintain payroll and oversee employees. Here are some points to consider when creating your own checklist.

Back Up Systems and Filing

Make sure to update all on line business systems and spreadsheets and back up your computer systems. Clear all paid invoices and records into a monthly batch. Moving to an online 'cloud-based' business management system can make these tasks easier.

Accounts Payable

At the end of the month, review a list of accounts payable. These are items and services purchased but not yet paid for. Accounts payable typically include short-term debts or payments owed to suppliers and vendors who offer services to businesses on credit. Close out the month by paying these bills and recording payment in the business's accounting software program or general ledger.

Accounts Receivable

Accounts receivables are monies owed to the business from sales or services rendered to customers. At month's end, prepare a chart or list of clients who have an outstanding balanced owed to the business. Record all payments, generate statements and initiate collection efforts with customers who are late.

Inventory

Inventory items are raw materials that can be sold for cash. Manage your inventory each month to determine which business materials should be reduced and which materials should be increased. If an inventory item moves slowly, remove or decrease stock of the item. If a particular material moves quickly, replenish the inventory item more regularly to keep pace with the product's demand.

Payroll

Businesses must keep thorough payroll records that include the hours worked, wages earned, deductions and net pay of each employee. Conduct a monthly review of payroll records and cross check for any discrepancies or errors. Report any payroll taxes withheld from the employee's wages along with taxes that are the business's responsibility.

Adjustments

Make monthly adjustments to each item on the business balance sheet. If the business has a petty cash box, ensure the amount of remaining cash and the total of the paid-out slips equals the amount reserved as petty cash. If the balance sheet shows more inventory than exists, make adjustments to material expenses. Business owners occasionally enter account numbers incorrectly, enter debits as credits or overlook payment items. Monthly adjustments reduce these errors by ensuring accounting items are listed accurately and mistakes are corrected prior to month's end.

Pay off outstanding Bills

The need to pay off any outstanding bills that your business may have before 2016 hits is critical. Stick to a budget during the slower months to avoid overspending for your business as much as possible – and if you don’t have a holiday budget drafted up, start creating one as soon as possible.

Just a few of the many ideas coming from The Business Minder in Asia. Happy New Year!