Being the leader of a small business can often face many challenges, as there are so many different moving parts that need full attention. One of those moving parts includes your business accounts and activity. Accounting is one of the most crucial parts to get right in order for your business to succeed, and meet its full potential. Here are some things you want to pay attention to in your business accounts if you are the leader of a small business.
If you are the leader of a small business, the first step you should take in terms of your business accounts is ensuring you retain a copy of all bank statements each month, and keep them on file in your records. Upon arriving, you should also be giving them a quick scan to make sure everything is looking accurate. This should also be complete with any credit card statements you may be receiving as well. If anything looks unusual or out of place, be sure to point it out to your accountant right away.
Request your accountant or bookkeeper to provide you with a monthly payroll report. This allows you to view firsthand what your payroll costs are and gives you an overview of each employee. Having this information allows small business leaders to make efficient decisions on staffing, and how each team member is performing versus what their income is. It should also provide you with information about overtime, and whether it’s more beneficial to continue paying out overtime or bump up your staff numbers to meet demand. Either way, it allows you to make the command decisions on your staffing in a way that works best for the company.
Bank Reconciliation Report
The company’s accountant or bookkeep is responsible for reconciling the books each month to the bank. The best way to ensure this is being done on a regular basis as assigned is to check your bank reconciliation report. This gives you reassurance the responsibility is being taken care of and also gives you an overview of where your business’s finances are.