The Ultimate Small Business Bookkeeping Checklist

Bookkeeping is a task that many business owners handle on their own during the initial months of operation. Some small businesses may operate in a very humble manner for years before adopting software for bookkeeping or hiring a dedicated employee for such tasks.

However, it's important to consider adopting bookkeeping as a daily task even if the small business only has one or two employees. The work you do today to conduct your business in a fiscally responsible and efficient manner will follow you and help you as you make progress toward becoming a medium-sized business.

Here's what you need to know about bookkeeping for your small business to help keep your cash-flow going.

Bookkeeping Checklist

Accomplish These Tasks Every Month

Time can get away from you more easily than you might think, and there are several essential bookkeeping tasks you'll want to accomplish each month. Those tasks will include everything from figuring out payroll and paying taxes to maintain your financial statements.

Monthly Payroll: Paying your employees each month shouldn't be too complicated if you only have a small staff. Working with Security Business Capital for invoice factoring can help ensure you are always ready to pay your employees.

Federal and State Taxes: As an employer, you'll need to sign up to use the Electronic Federal Tax Payment System (EFTPS). Depending on your status, you'll pay taxes monthly or semi-weekly.

Balance Sheet: Your balance sheet will feature all the assets, liability, and equity changes that take place over the course of the month. Examining your balance sheet on a quarterly basis can help you maintain your business's overall health and profitability.

Profit & Loss Statement: A profit and loss statement is another document that can help you keep track of how much money you're making (or losing) each month. It's important to track this number over time.

Cash Flow Statement: An essential consideration for any business – large or small – is cash flow. You can't simply ballpark this figure and expect to thrive. It's important to make sure your business maintains its cash flow over time.

Contributions to Retirement Accounts: Don't neglect contributions to retirement accounts. If you're a small business owner and work as a self-employed individual, you'll be the sole person responsible for growing your retirement savings.

Accomplish These Tasks Each Quarter

There are some additional tasks you'll need to complete each quarter, and the information you gather for these tasks depends on the information you'll have on hand from your monthly financial reports.

Employer's Quarterly Tax Return: Although your business will make payments each month for withholding, the government still requires you to file Form 941. The form is pretty basic and is just an accounting of the payments you've already made to the government.

Quarterly Tax Returns: Many states require businesses to file a tax return each quarter, and speaking to an accountant is the best way to figure out when and how often you must file your business tax returns.

Unemployment Tax Payments: You may need to pay state and federal unemployment taxes, and each of these taxes is due each quarter. The size and number of taxes paid by your business will vary depending on how much tax you owe.

Estimated Taxes: If you're self-employed and own a small business, you have to pay taxes each quarter because an employer isn't paying them for you. The dates for paying estimated taxes are January 15, April 15, June 15, and September 15.

Once-a-Year Tasks

April 15th is an important date to remember because it's the official "tax day," but there are a variety of yearly tasks that you may need to accomplish at various points during the year. Those tasks include:

• Finalize your books for the year and save copies of your financial statements.
• Send W-2s and 1099s out to employees by January 31.
• File form W-3, which sends your W-2 and 1099 information to the government.
• If required, file your business income taxes using IRS Form 1120.
• File personal income taxes according to your personal, corporate tax year.

If you find that your bookkeeping tasks are taking too much of your personal time, using a third-party bookkeeper can help ensure all documents are submitted on a timely basis.

Cash Flow Solutions from Security Business Capital

If you're interested in reducing your time commitment regarding the invoicing of clients, you may wish to work with Security Business Capital. We provide purchase order financing, spot factoring, and invoice factoring services that can help you maintain cash flow and ensure your business is run in an efficient manner.

To learn more about our services, contact Security Business Capital.