5 steps for a fast bookkeeping cleanup plus a checklist Karbon resources

Keeping track of ongoing fixed transactions makes cash flow management how to get funding for a startup a beginners guide and bookkeeping easier. Bookkeeping is the process of recording the financial transactions of your business, classifying those transactions by type, and organizing them into a single book of record. To learn more about how these and other Karbon features can help automate aspects of the bookkeeping cleanup process, book a demo or start a free trial.

#5: Reconcile Credit Card and Bank Accounts

Karbon’s client portal enables you to securely request and receive client information and documentation. You can also collaborate with clients in the portal via comments. See how much time and money Karbon’s client portal can save your firm with this time savings calculator. This allows you to focus more on client-facing tasks while preventing any human error that may have contributed to messy books in the first place. Whatever your goals and timelines look like, communication is key.

What to Include in Your Bookkeeping Checklist (Free Template)

Resist the urge because this practice can create a quagmire that blurs the line between your finances and the finances of your business. Bookkeeping plays a critical role in your potential to maximize deductions. Examples include tracking mileage, organizing and executing payroll costs, and maintaining paperwork from accounts receivable. It’s important to have an efficient bookkeeping system in place if you want your firm or business to grow and succeed. Check your inventory status on a month-to-month basis to avoid being caught off guard by a shortage in supplies.

You can request information from your clients and Karbon will send automatic email reminders until the request has been completed. Effective task management also means delegating these action items across your team based on your CPAs’ skills, expertise, and availability. Your most senior accountants have probably had experience with similarly urgent situations. From then, you’ll be better equipped to analyze their financial data and business needs, helping them make clear business decisions. Duplicates should be merged, accounts should be named logically, unused accounts should be removed, and new accounts should be created as necessary.

Review accounts payable and receivable, payroll, inventory records, and taxes

Your chart of accounts will be more logically ordered and understandable if you clean it up. How often do you reconcile your accounting accounts (e.g., assets)? If you don’t reconcile your books with your external account balances (e.g., bank account), you’re going to be left with bad books.

If you’re in a peak period or just completed one, you might want to review your inventory more often to ensure things go smoothly. Download this checklist from Acuity, and start optimizing your financials. Simplify your processes with the help of this guided checklist, including insightful data, helpful resources, and easy-to-use templates. You must check your inventory records if you sell products to ensure that all purchases and sales have been appropriately documented. By reviewing your inventory records, you can ensure you’re not stocking up on unnecessary items and that your prices are reasonable. By auditing your receivables, you can ensure that all unpaid bills are appropriately recorded and that you follow up with clients/customers who still need to pay.

Ensure all employee payments, like salaries, free printable receipt wages, and deductions, are documented, up-to-date, and compliant with all tax requirements.

1. Want to be at the top of your bookkeeping game all year long and equip your employees with the right tools?
2. As a bookkeeper, it’s your responsibility to keep your clients’ books in order.
3. Duplicates should be merged, accounts should be named logically, unused accounts should be removed, and new accounts should be created as necessary.
4. Accurate bookkeeping is the key to getting a clear picture of your business’s health.
5. Your team will breeze through their assignments and quickly see what’s completed.
6. This is a great natural storage system for managing your electronic purchases.

The process should be reviewed regularly to look for software solutions that can save you time and hassle. Modern software can scan invoices and import accounts payable information directly into various software. Financial institutions allow access to bank feeds which allow you to import most transactions directly. Want to be at the top of your bookkeeping game all year long and equip your employees with the right tools? You can download 32 workflow templates here for free – it includes a bookkeeping checklist template that will make accounting easier for you going forward. Next, If you have any past due invoices, there is no better time to send them a reminder.

Setting and communicating clearly defined expectations with your client will ensure all stakeholders connecting the income statement and balance sheet know what to expect. An accounting engagement letter template can help set this project up for success. Once the data has been cleaned up and reconciled, it’s time to review the accounts holistically.