06 April 2018
Following details are required to be maintained
Cash and Credit Card Accounts
Make sure all accounts are reconciled as of the last statement date. Review outstanding checks/deposits to ascertain that they are really outstanding-it’s possible you might have recorded something twice- for any checks older than a few months you might want to follow up with the payee to see why they have not cashed the check. Void and/or reissue the check if necessary.
Accounts Receivable
Review an open invoice or accounts receivable report-ascertain that all items are accurate and collectable. Send reminders to your clients and write-off uncollectable accounts.
Suspense or Uncategorized Expense Accounts
These accounts should be used as clearing accounts and should usually zero out- any balances should be reviewed.
General Ledger Income and Expense Accounts
Review income and expenses for proper categorization-this is where you make sure you didn’t inadvertently classify your accounting fees as an entertainment expense. Take a quick look at all general ledger activity and do further investigation if something doesn’t look correct. If your accounting system uses the accounts noted below, run a report for each and review:
Work in Progress
Make sure that all items listed in this report are really in progress- if the item is complete and appearing in this report you probably forgot to invoice the client.
Accounts Payable
Ascertain that all payables are accurate- small amounts remaining can mean that you originally entered one amount in your purchase cost and that your final vendor invoice was different–review your vendor invoice- if necessary, adjust your purchase cost to equal the final vendor invoice.
Client Deposits
Check all clients’ funds available and item deposits for accuracy-you might realize you have client money that has not been applied to an outstanding invoice or that you owe a refund to a client.
Vendor Deposits
Ascertain that all vendor deposits appear reasonable. Reviewing your records in November and again at the end of the year will not only put you in a better position at tax time but will also give you a more accurate profit picture for the current year. It will also help you to budget for next year.
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