Have you currently a messy financial statement? If yes, means that the company's financial activities are not neatly arranged, namely on the quality of financial statements.
Usually, the main causes of poor financial statements are the lack of financial management and the manufacture in a hurry.
The following are 9 daily financial activities to annual proven effective in helping business people and teams in preparing financial statements.
Daily quality activities of financial statements
1. Check cash conditions
Cash is a company's energy source. Therefore, start your day by checking financial conditions every day.
Make sure that the company has enough funds to make a transaction that day.
Thus, you will avoid the risk of running out of money or financial chaos.
2. Check and record all transactions
End your day by checking all the transactions that occur.
Make sure any proof of transactions such as invoices, notes, checks, or receipts are gathered neatly so you have no trouble finding it at the end of the month.
Then record each of these transactions into the bookkeeping.
Remember that transactions without evidence are considered invalid and must be accounted for.
Weekly activities
3. Review of the company's business activities
After a week, it's time for you to review all business transactions that have not been done.
Check unpaid company debt, especially due on the week, to maintain a good relationship with suppliers.
Remember to always save proof of shipping or payment.
The monthly activity of quality financial statements
4. Complete each transaction
Try to make all transactions resolved at the end of the month so you have no trouble working on the report.
Transactions that are finished on time will clarify your financial statements.
5. Prepare monthly financial statements
Make sure your financial statements are ready every month. Especially for tax payment needs.
Transactions that have been neatly recorded will help you complete financial statements faster.
Remember that the financial statements must at least have a profit and loss report, balance sheet, and cash flow statements.
6. Record financial comparisons
Remember to include a comparison of income and expenditure this month with the previous month to find out the company's financial condition.
The results can be your reference in making a better financial plan.
You can present it in the form of a graph or chart.
Annual activity
7. Evaluation of Company Financial Activities
Collect your employees and conduct financial evaluations this year based on financial statements every month.
Then compare with expenses and income in the previous year.
You must determine the budget that must be added, reduced, or removed.
The results of this evaluation will be your foundation in making financial plans for the following year.
8. Check inventory conditions
Check the quality of the company's inventory, especially those already used, is a very important year-end activity for the implementation of company activities.
By conducting checks, you can find out whether the company's equipment or equipment has declined the quality and must be replaced.
9. Arrange your year-end report
The end of the year is the time of the company's audit. Just like the process of making a monthly report, making annual reports also requires the complete transaction and statistical data.
The making of reports will be faster if you have collected and tidied these data early.
Reports require high levels of accuracy and objectivity.
In this case, you are advised to use accounting software that will automatically process your reports.
Formulas that have been programmed in online-based software will organize your data into the form of financial reports, including monthly or annual reports so that you no longer need to spend time making repeated reports.
Now you can easily supervise and control the company's financial condition through the 9 activities above.