The goal with these steps is to figure out the story that your numbers are telling you.
Then leverage this clarity in your financial position to make excellent business decisions.
Or leverage yours truly so you can focus on what you do best!
Download statements: create folders and a naming system for easy reference
Categorize transactions & reconcile accounts: catch fraudulent or unnecessary charges such as cancelled payments that haven't been cancelled; ensure that the accounts are only showing business transactions
Collect and store receipts for large purchases: follow up with your tax professional for why these may be important
Review A/R for outstanding invoices: so you can see who is and who is not paying you
Review A/P to ensure bills are paid: if experiencing cash shortages, create a holdouts template to ensure that there are always funds for the most important payments
Set aside money for taxes & pay yourself: these amounts will depend on several factors that you will want to discuss with your tax professional so they can give you the best advice. The amount you pay yourself will flow into your personal finances for which you will either have or create a plan for exactly how you will use.
Review financial statements to monitor performance: a. 12 Month Balance Sheet - check the balances on all your accounts, b. 12 Month Income Statement - check the flow and categorization of your income & expenses, c. Cash Flow Statement - shows you the sources and uses of your cash