Keeping your finances in order can be challenging. In order to have your all the financial information you need to successfully complete your taxes in the spring, you need to make sure your books are up to date. This is a process that is never-ending and takes diligence on your part. It’s a question worth asking: When is the best time for you to review your books? The answer may surprise you.
Instead of reviewing your books all at one time, it’s best to schedule many little mini check-ins at regular intervals.
Daily review:
At the start of each day, check in on how much cash you have on hand and if it aligns with projected expenses in the upcoming week.
Weekly review:
- Record all transactions by the end of each week in your accounting system, whether it’s Excel, Quickbooks or another tracking system. While it’s temping to postpone this when it’s a busy week, it will ultimately cause accounting challenges down the road if you get too far behind.
- Track all receipts. Make copies of all receipts and deposits, and keep them organized on a weekly basis. Don’t make the mistake of throwing all your receipts into a folder and waiting until tax time to sort them! Keep a clearly labeled filing system for easy access to any vendor or customer.
- Forecast your weekly cash flow. Review expected cash payments and when you are expecting them. Be ready to follow up with invoices you’ve sent out.
Monthly review:
- Review your checkbook balance monthly and reconcile your cash. Schedule time each month to review each transaction and make sure there were no mistakes made by you or by the bank.
Follow these steps, and you’ll be well on your way to having a well-maintained accounting system for your business!
When you need help reviewing your books to make sure you are staying on track, you’ll want to contact DSJ in Nassau County. DSJ has over forty years of experience serving a variety of accounting needs in Nassau County. We invite you to us today at 516.541.6549 or email us at to set up an appointment to discuss your accounting needs.