5 Essential Accounting Tasks for Small Businesses and Freelancers

In this article we will be looking at a list of 5 Essential Accounting Tasks for Small Businesses and Freelancers.

As a small business owner there are just basic accounting tasks that can not be ignored in any business. Many small businesses prefer hiring a bookkeeper to perform most of these tasks but this does not mean you have been relieved of your accounting duties.

Having in mind that a business is a full-time job, the aspect of accounting is a very essential part in the growth of any business.

Here is a list of a few Accounting Tasks you should know about and be doing every week.

1. Record all Expenses & Transactions

It is advisable to always record all your business expenses and transactions although bookkeeping for small businesses can be difficult to understand. Bookkeeping is all about having records of the financial transactions and information of your business.

The advantage of keeping records is that it helps ensure financial transactions are correct, up-to-date and comprehensive.

2. Balance Business Checkbook

Another thing you will want to do is make sure your transaction entries are correct each month. As a small business this is part of those little tasks that should be taken seriously to ensure that you are working with the correct cash position.

3. Check Cash-flow Position

You should always do a review of your cash flow, and by doing this often you can monitor how funds are coming in and going out of your business.

4. Prepare & File Taxes on-time

As a small business owner, it now becomes your obligation to pay taxes. For small businesses which ar the just in their infant stage tax-related activities may be a new responsibility, in most cases a professional accountant is needed and it is sometimes better to call for help if there is need.

5. Send out Invoice as Soon as Possible

Sending out invoices on time can affect your cash flow positively. This means you are no longer extending the time it takes to get paid, and also prevent situations like forgetting to send the invoice at all.

Final words 

These are some of the essential Accounting Tasks for Small Businesses and Freelancers. Never ignore any of these tasks in your business.

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