Tasks Every Small Business Owner Should Be Doing – Part 3
Welcome to part 3 of this 4 part series on accounting tasks for small business owners.
In the first part, we went over the daily and weekly tasks you, as a small business owner, need to be completing. In part two, we reviewed the monthly tasks and in this post, we will go over the basic quarterly tasks.
4 Quarterly Tasks
1) Evaluate Profit & Loss
Each quarter review your profit & loss (P&L) statement to identify differences in revenues and expenses. Figure out why those differences occurred and any trouble areas so that you can make adjustments where needed to improve your profit margin.
2) Payroll Reports
When you have employees, completing and staying on top of payroll is contingent on your business’s success. Each quarter review payroll and all payroll remittances to ensure your payments are current. The goal is to ensure that your reports reflect your payroll obligations correctly and that you don’t have any discrepancies with government agencies.
3) Sales Tax
Tax remittances are due each quarter for most businesses. If you haven’t been tracking your GST/HST and PST (if applicable), now is the time to get caught up. Remit your taxes and pay them on time to avoid penalties.
4) Income Tax Review
If you haven’t signed up to remit taxes quarterly, you may be in for a huge tax bill at each year-end. It’s best to review where you stand each quarter and make smaller payments over time than it is to find a large lump-sum amount at tax time. Talk to an accountant to see what your best options are.
In summary, each quarter your focus should be to review all remittances are current and that your business is still operating as expected. Concerning trends at the end of each quarter should be investigated and appropriate actions taken to rectify them. To find out what types of trends are concerning contact me today for a free initial consultation.