Running a business means juggling an endless stream of responsibilities, and when it comes to finance and accounting, the stakes couldn’t be higher.
Over the course of a year, finance teams are tasked with managing cash flow, reconciling accounts, preparing tax filings, and crafting budgets—not to mention responding to unforeseen audits or compliance demands. The volume and complexity of these activities can be overwhelming, especially for small businesses that lack a robust finance team structure.
And the repercussions? They’re not just inconvenient—they’re costly. Missed deadlines can result in steep fines, and inaccurate data can derail decision-making, leading to poor budgeting, unrealistic hiring plans, or even compliance violations. A missed tax filing or improperly handled audit could lead to penalties, damaged vendor relationships, or regulatory scrutiny. Even something as simple as outdated financial reports could mean lost opportunities for growth or missteps in strategic planning.
For businesses to thrive, finance and accounting processes need to run like clockwork. This guide provides a roadmap for organizing financial tasks by cadence—daily, weekly, monthly, quarterly, and annually—to reduce overwhelm, avoid costly mistakes, and maintain control over the numbers that drive your business forward. Each section is broken down further into key business functions: Accounting and Financial Operations, Financial Reporting and Analysis, Strategic Planning, and Tax Compliance and Regulatory.
Whether your finance and accounting team is fully in-house or you work with a trusted partner like Compass East, having a clear plan can take some of the stress out of financial management.
Daily Activities
Accounting and Financial Operations
Expense Management
Handle ad hoc expense payments as needed. For most businesses, this process is not daily but occurs whenever a specific need arises. Examples include urgent vendor payments or employee reimbursements.
Treasury Management
Monitor account balances and transfer funds between accounts to cover expenses. For businesses with multiple entities or accounts, this activity may involve sweeping excess funds into savings or money market accounts. This daily check ensures liquidity and optimal use of resources, especially for businesses with high transaction volumes or variable expenses like payroll.
Weekly Activities
Accounting and Financial Operations
Run Payroll
Process payroll according to your company’s cadence—whether weekly, biweekly, or semi-monthly. Ensuring timely payroll is critical for employee satisfaction and compliance.
Bank and Credit Card Transaction Coding
Categorize transactions to keep financial records up-to-date. For high-transaction businesses, this activity may occur daily; for others, a weekly cadence is sufficient. Accurate coding simplifies month-end reconciliation and reporting.
Revenue and Accounts Receivable Management
Review revenue streams and manage accounts receivable. Tasks include invoicing clients and processing payments. For businesses with high sales volumes, such as those using point-of-sale systems, this process may involve daily tracking; otherwise, weekly checks align with invoicing and payment cycles.
Accounts Payable Management
Organize and process vendor bills on a weekly cycle. This activity includes coding and approving invoices, followed by payments via ACH, check, or other methods. Small businesses often handle it ad hoc, but implementing a structured process improves efficiency.
Cash Flow Monitoring
Track inflows and outflows to ensure adequate cash availability for upcoming expenses. Businesses with more unpredictable cash flow or cash flow issues may need to monitor daily, but weekly reviews provide sufficient insight for most.
Expense Report Processing
Reimburse employees for business expenses in sync with payroll cycles. Most companies align this task with biweekly or semi-monthly payroll runs to maintain efficiency and consistency.
Monthly Activities
Accounting and Financial Operations
Balance Sheet Account Reconciliation
Reconcile all accounts on the balance sheet, including bank accounts, credit cards, loans, fixed assets, and equity accounts. This process ensures financial accuracy and highlights discrepancies early.
Review Accounts Receivable Aging Report
Cross-check aging reports against weekly updates to monitor overdue payments. This activity serves as a safety net to ensure no receivables are overlooked.
Review Accounts Payable Aging Report
Examine payables to ensure all bills are being paid on time and that cash flow is aligned with obligations.
Close Books for the Month
Follow a comprehensive checklist to finalize transactions and financials for the month. This process lays the groundwork for accurate reporting and analysis.
Sales Tax Payment and Reporting
Prepare and file sales tax returns as required by local regulations. Timely submissions avoid penalties and maintain compliance.
Commission Calculations
Calculate and process commissions for sales teams based on monthly performance metrics.
Revenue Recognition
Reconcile revenue, including deferred revenue, to align with compliance standards and recognize income accurately.
Accruals and Prepaids
Adjust for accrued expenses and prepaid items to ensure expenses match the correct period.
Financial Reporting and Analysis
Sales and Pipeline Review
Analyze the sales pipeline and revenue performance. While sales teams often perform this activity weekly, the finance function consolidates and evaluates the data monthly to assess alignment with projections and targets.
Monthly Financial Statements Preparation
Compile the three core financial statements: the income statement, balance sheet, and cash flow statement. These statements provide a comprehensive view of your business’s financial health.
AP and AR Aging Reports
Review accounts payable and accounts receivable aging reports to monitor overdue payments and outstanding invoices, ensuring a clear picture of cash flow status.
Budget Versus Actuals Analysis
Compare actual revenue and expenses to projections, identifying variances and their causes. This analysis helps adjust forecasts and maintain budgetary discipline.
KPI Analysis, Review, and Reports
Assess financial and operational key performance indicators (KPIs). This review can also include non-financial KPIs if the data is clean and available, offering a holistic view of performance.
Year-to-Date and Trailing 12-Month P&L
Prepare profit and loss statements covering the year to date and the trailing 12 months. These reports provide historical context and support long-term trend analysis.
Forecast Updates
Adjust forecasts, combining actual results with budgeted projections to offer a realistic picture of expected outcomes.
Monthly Financial Review
Conduct a dedicated meeting to discuss financial results with senior leadership. This meeting highlights insights from the financial statements and analyses to guide decisions that reflect your business’s current performance and support its goals.
Strategic Planning
Reforecasting as Needed
Update financial forecasts to reflect changes in business conditions, unexpected revenue variations, or shifts in market dynamics. These adjustments ensure ongoing alignment with your company’s strategic goals.
Tax Compliance and Regulatory
Sales Tax Filing
Calculate and submit sales tax payments to meet state and local requirements. This task ensures the company remains compliant with applicable sales tax regulations.
Payroll Tax Compliance
Verify that payroll taxes are calculated correctly and submitted to the appropriate agencies. Regular reviews help identify discrepancies early.
Vendor W-9 Review
Review vendor records monthly to confirm that all necessary W-9 forms are on file. This step simplifies the preparation of Form 1099s during annual tax filing.
Quarterly Activities
Financial Reporting and Analysis
Quarterly Financial Statements
Prepare financial statements for specific audiences, such as boards of directors or investors, if requested. These reports often consolidate monthly results for a broader overview.
Quarterly Review of Trends and Adjustments
Use quarterly reviews to validate and build on the monthly reporting cycle. When monthly processes are thorough, quarterly activities often require minimal additional work.
Strategic Planning
State of the Company Updates
Share updates on organizational progress and financial health with employees and stakeholders. These updates often occur quarterly and can be combined with mid-year and annual reviews to maintain transparency and engagement.
Senior Leadership Team (SLT) Quarterly Meetings
Conduct quarterly strategy sessions with the senior leadership team to evaluate performance against goals and address pressing challenges. These meetings are essential for recalibrating priorities and maintaining focus on the company’s vision.
Scenario Planning and What-If Analysis (can be ad hoc)
Use ad hoc scenario planning to assess the potential impacts of changes in market conditions, operational challenges, or strategic pivots. This process allows teams to prepare for a range of possible outcomes.
Tax Compliance and Regulatory
Quarterly Estimated Tax Payments
Submit estimated tax payments to avoid underpayment penalties. This process involves reconciling quarterly estimates with actual income and expenses.
Compliance Audits (ad hoc)
Respond to requests for compliance audits from vendors, payroll providers, or insurance companies. These audits typically require that you provide additional documentation, such as payroll records or transaction details.
Annual Activities
Accounting and Financial Operations
Year-End Financial Close
Perform a thorough review of financials for the entire year, ensuring consistency and accuracy across all months. This process includes reconciling accounts, reviewing coding practices, and confirming completeness.
P&L Trend Analysis
Analyze profit and loss trends over the year to identify areas for improvement or investment.
P&L Review and Cleanup
Ensure all entries are correctly categorized and aligned with the current chart of accounts. This cleanup lays the foundation for accurate annual reporting and tax preparation.
Chart of Accounts Review
Confirm the accuracy and relevance of your chart of accounts to reflect business changes or new financial requirements.
Financial Reporting and Analysis
Annual Financial Statements
Finalize comprehensive financial statements for the fiscal year, ensuring accuracy and alignment with all reporting standards.
Annual Budget Planning
Conduct a detailed budget planning process beginning in September or October. The process should include:
- Top-down budgeting based on overall revenue and expense targets
- Bottom-up budgeting informed by departmental input
- Reconciliation of competing priorities by senior leadership to finalize the budget
- Development of mid, low, and high-budget scenarios to accommodate variability
- Inclusion of a departmental hiring plan aligned with budget goals.
Strategic Financial Review
Analyze financial performance in the context of strategic goals. This review examines assumptions from the previous year, decisions that altered outcomes, and adjustments needed for future planning.
Benchmark Analysis
Track and analyze key metrics against industry standards and internal benchmarks. Focus on incremental improvements rather than immediate transformations, recognizing that progress is often gradual.
Strategic Planning
Sales Projections
Collaborate with the sales leader to align on annual revenue targets. Provide historical data for context, gather departmental projections, and work collaboratively to finalize realistic goals. This process includes reconciling optimistic and conservative estimates to achieve a balanced target.
Long-Term Strategy Review
Examine overarching business strategies, ensuring they align with evolving market conditions and company growth objectives. This review typically incorporates data from financial reporting, stakeholder feedback, and industry benchmarks.
Stakeholder Reporting
Prepare detailed reports for stakeholders, such as board members, investors, or senior leadership. These reports are generated quarterly or annually, depending on stakeholder needs, and provide insights into the company’s strategic progress.
Vendor Reviews and Proposal Comparisons (can be ad hoc)
Evaluate vendor relationships and service agreements as part of the annual planning process. When new vendors are needed, or renewals arise, gather at least three proposals to identify the best option. This review ensures value for money and supports effective cost management.
Annual Budget Planning Integration
Incorporate strategic planning activities into the annual budget process. This integration ensures that financial resources align with strategic priorities, including departmental hiring plans and investment goals.
Tax Compliance and Regulatory
Annual Tax Filing Preparation
Start preparing for tax filing in January or February after the year-end financial close is complete. This process involves gathering documentation, reconciling accounts, and reviewing data for accuracy.
Form 1099 and W-2 Filing
File forms by the federal deadline, typically starting January 15. Proactive preparation, including collecting W-9 forms throughout the year, reduces last-minute stress.
Audit Preparation (if required)
Gather and organize documentation for an external audit, if necessary. This process may include providing detailed financial statements, tax filings, and compliance records.
Annual Report Filing
Submit the annual report by the state-mandated deadline. This filing generally includes updates on company structure, leadership, and financial performance.
Insurance Policy Review
Review insurance policies at least two months before renewal to ensure adequate coverage and identify opportunities for cost savings. If appropriate, solicit proposals from multiple providers to secure competitive rates.
Building the Right Team to Get It All Done
Managing the breadth of finance and accounting activities outlined in this guide takes more than just one person—it requires a team with a variety of skills. However, this doesn’t mean small businesses need to hire a full-time CFO, controller, and accounting staff all at once. The key is strategically filling roles based on your business’s unique needs, often leveraging fractional resources to build a flexible and cost-effective finance function.
That’s where Compass East comes in.
Whether it’s a part-time bookkeeper to handle day-to-day transactions, a senior accountant to ensure accuracy and compliance, or a controller to help implement the CFO’s vision, Compass East delivers the right mix of resources at the right time.
When you partner with us, you gain access to a team of specialists who can handle the heavy lifting, from reconciling accounts to preparing financial statements, so you can focus on growing your business.
Schedule a free consultation with our finance experts.
