Ensure that all bank accounts used by your business are setup and included in the QuickBooks or Xero software.
Ensure that all transactions for each of your bank accounts have been included in total for the month or year.
In practice, this will also include accounts such as Paypal, Stripe, TransferWise, company credit cards and bank loans etc. This will also mean ensuring that each bank account balance is ‘reconciled’ or matching the balance on the bank statement!
Ensure that payments from customers are allocated or paid accurately against the customer/sales invoices, and that ‘payments on account’ or ‘part payments’ are all invoiced accurately.
This means that when running the Aged Debtors or Outstanding Customer invoices reports, there should be little or no…
- Payments on the report without invoices or
- Invoices on the list which have been paid, but remain outstanding on the report.
Ensure that payments to Suppliers are not made without having the invoice against which the payment is being made!
Ensure that when running the Aged Creditors (or Outstanding Supplier invoices reports), there should be little or no…
- Payments on the report without invoices
- Invoices on the list which have been paid but remain outstanding on the report.
It is really important to ensure that all of your business activity is kept as up to date and accurate as possible.
Where you have decided to continue to manage the bookkeeping for your business, then it is important to avoid these problems by keeping your bookkeeping accurate and up to date!