The start of summer marks a significant portion of the year wherein summer camps are prevalent, outings and trips are being planned and a whole variety of activities are underway for children and adults alike. With this variety of activities comes the opportunity for would-be entrepreneurs to birth their ideas and prospects into an actual business endeavor.
But it is important to note that a successful business endeavor does not end only with an idea. It is, in fact, only the beginning of a tedious and rigorous process that requires adequate knowledge, skill and business acumen. Does that mean that only those minds gifted with the knowledge of commerce can operate a successful business? The answer is in the negative. Even with average knowledge of business, finance, and accounting you can succeed in business if, and only if, you employ the services of individuals who have excellent knowledge of financing and accounting.
When starting a business, one needs to establish proper controls for the handling of cash. Cash is considered the most liquid asset of any business. This means that handling cash effectively is vital to the survival of any neophyte business. What standard procedure should be followed when handling cash properly for a small to medium-sized business?
First, physical access to cash should be restricted and limited only to people with authorization. For SMEs, custody of cash rests with the owners themselves. This allows them to monitor collections and safeguards the cash at the same time.
Second, revenues and collections should be deposited on a daily basis. By depositing your cash sales daily, you can be certain that your asset is being protected from possible theft and loss. After depositing your cash, make sure to keep the validated deposit slip for recordkeeping and reconciliation purposes.
Third, bank accounts should be reconciled at the end of each month. All revenues recorded in your accounting books and journals should match with the cash deposited in your business’ bank account.
Lastly, your personal bank account should be separated from the business’ bank account. Avoid mixing the usage of these two accounts. This practice permits you to properly monitor the performance of your business in terms of inflows and outflows.
If you are looking for an entity that can provide you with the guidance for the tasks above, Jeffrey Fleurinor, CPA is the right choice for you. We can provide you with excellent Accounting and Tax Services in Georgia.
Call our office today to know more about the services we offer.