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A Financial Management Checklist

By November 21, 2013 No Comments

All too often when we start a new AcuityComplete or AcuityCFO engagement, our team has to perform financial ‘cleanup’ work to untangle details that have been overlooked and ignored. Until the accounts are in order, they can’t be integrated or used to produce useful financial data. While bookkeeping is largely tactical, careful management is crucial to business strategy. Maintaining a financial management checklist can be extremely useful for keeping your bookkeeping in order.

Think about your bookkeeping like that closet in your house that tends to be the catchall. If you simply dump things in there because you think that you might need them later, but you neglect to review or organize the contents, the mess can threaten to overwhelm the space. You’ll be forced to handle a huge amount of clean up, and you may have to face a nagging sense that you could have prevented the situation altogether.

Similarly, your bookkeeping has to be handled with regular precision and focus. If it isn’t, it can end up a giant, jumbled mess of information that should have been useful but isn’t, because it wasn’t properly managed.

The good news is that there are a few key questions that will assess the quality of your bookkeeping. This is a list you’ll want to copy and paste somewhere so you can use it as a regular checklist for yourself or the person handling your books. To be sure, the AcuityComplete team of bookkeeping experts uses it – that’s why our clients have access to useful financial reports whenever they need them. Organization and accountability are powerful tools for building a sustainable business model.

Checklist for Assessing The Quality of Your Bookkeeping:

  1. When was the last time your bank and credit card accounts were reconciled?
  2. Do these reconciliations have old items in them from more than 6 months ago?
  3. Are there items on the balance sheet that you don’t understand?
  4. Are there transactions in the “miscellaneous” or “uncategorized expenses” accounts of your income statement?
  5. Do your accounts payable or accounts receivable reports show lots of old items and/or credits?

What other would you put on a checklist to hold yourself or your bookkeeper accountable?