Accounting often seems complicated and foreign to small business owners. But it doesn't have to be so daunting. And it can even provide plenty of useful information. Much of this useful data doesn't come from summary reports you may rarely see but from supporting documents known as schedules. To help you better understand your company's financial situation, here are four valuable schedules and what to do with them.
1. Accounts Payable Schedule
Do you know exactly who you owe money to? Can you easily prioritize which payments need to be made and when? If not, the accounts payable schedule gives you all this information at your fingertips.
The person in charge of paying bills uses this schedule on a daily or weekly basis. In addition, it helps manage cash flow by scheduling payments when money is more available.
2. Accounts Receivable Schedule
Accounts receivable is the opposite side of accounts payable. It consists of those who owe you money. Specific details about outstanding invoices allow you to pursue collections efforts with confidence and avoid unnecessarily troubling clients. Perhaps more importantly, it ensures that no invoices are forgotten or overlooked.
As with its counterpart, the individual who manages client accounts uses this schedule regularly. But it also provides details for internal and external auditors and identifies any historically problematic payers.
3. Inventory Schedule
Does your business hold inventory? Then you need to know what you have and how much it's worth. Inventory schedules are generally broken down into raw materials, works in progress, and finished goods. This is essential to keep ahead of demand as well as to keep items moving rather than stagnating.
It's obvious to see how this schedule is vital for inventory managers. But inventory is an asset, so accounting management also needs to know its value.
4. Asset Schedule
The least-used schedule is probably the schedule of assets the company owns. These are larger assets, such as buildings, vehicles, heavy equipment, and computers. These items make up a significant portion of the company's value at any given moment, so it's important to know what you have.
Auditors may check your asset schedule to verify report accuracy. Management uses it to obtain credit and gauge the health of the company. And your tax accountant will use it to figure depreciation.
Where to Learn More
Could you use the information in these or other schedules? Learn more about them by meeting with a qualified accounting service in your state today. With their guidance, you'll soon have a better handle on your company's money and its future.
For more information on accounting, contact a company near you.Share