The Essential 10-point Accounting Checklist for Flawless Financial Records

1. Invoice your clients 

The first step to gathering revenue for your business is to regularly invoice your clients. This is proof that you’re doing business with a vendor, or customer. As a result, you are able to gather evidence of revenue generated and create proper documentation for it. 

2. Bank Reconciliation 

Bank reconciliation refers to double checking your calculations with that of the bank when dealing with the takings. Checking the calculations can be a very meticulous process, which is why accounting is often so complicated. But, by double checking the records, you are able to eliminate any errors that may arise in the documents. 

3. Expense Management Process 

Expense management, in this case, refers to employee expenses. Dealing with employee expenses can be a very tricky task, especially if there are a large number of them in your company. Proper accounting requires that the employee expenses are smoothly taken care of, and documented for later reports. 

4. Accounts Receivable Process 

Accounts receivable refers to the money that you are expecting to receive. This lets you plan for the future as if the money was already there in the company bank account. Maintaining accounts receivable lets you continue with your business and wait on the pending payments.

5. Accounts Payable Process 

On the other hand, accounts payable is the amount of money that a company owes to its vendors or suppliers. To minimize the risk of frauds or unexpected losses, you should have a clear idea of the company debts. This amount should be cleared regularly to avoid any confusion when accounting for it later. Analyzing these accounts also helps you reduce unwanted payments as the company grows larger. 

6. Profit and Loss Statement 

A profit and loss statement is one of the most fundamental pillars of your company’s accounting process. The profit and loss statement deals with the amount of money that the company is spending and earning over a period of time. It also showcases key numbers such as net profits, profits before tax and any retained earnings. 

7. Cash Flow Report 

A cash flow report is focused on the internal workings of the company. It documents and analyses the cash receipts, payments and net change through investing, financing and operations. A cash flow report can be generated daily, or over a similar regular interval depending on the company. Maintaining steady cash flow is more important than focusing on profits. And documenting it is even more essential for success. 

8. Prepare the Balance Sheet Statement 

The balance sheet is also known as the statement of financial position of the company. It displays the assets, liabilities and shareholders’ equity. The company balance sheet is the most important document you need to maintain. This displays what the company owns, and the money it owes, while showcasing the amount of money invested by others. The balance sheet can be used to document all these metrics at meetings, and to suppliers or vendors you’d like to work with as well. 

9. Business Tax Preparation 

Business tax can be a tricky road to navigate, since there is a constant confusion about the amount you’re expected to pay. The accounting department needs to be aware of the different kinds of taxes the company is expected to pay. Business tax also affects your profits, and is tied to the profit and loss report. Executing the documentation and  preparation of business tax is up there with the most elaborate processes in company accounting. 

10 . Annual Financial Report

The annual financial report is a summary of all the hard work that the accounting team has done over the year. It includes the profit and loss statement, cash flow report, income statement and the balance sheet. A projection about the company’s future can also be included in the annual report. It can also be used to assess the various business strategies going forward. 

Conclusion 

Good business accounting is proof that your company funds are being managed properly. With the accounting checklist of these 10 important processes, you are now ready to document company funds systematically and minimize losses. 

Accounting for all these metrics can be a very tedious process. And if you’re looking for a solution to help you make the process smoother, Mesh Payments can help. 

By automating processes and putting our spend management software to work, you can save valuable time and money on accounting. 

It’s very easy to get started with Mesh, and you will notice the upgrade in managing accounts right away. 

• Get the latest blogs from Mesh by subscribing to our newsletter

Sarah Murphy

Sarah is a Content Manager for Mesh Payments. Before working in marketing, she completed her Master of Journalism degree at Toronto Metropolitan University (f.k.a. Ryerson University) and worked as an arts journalist in Toronto. She was a content writer for tech companies in the retail and workforce management sectors before joining Mesh in 2022.