Your Accounting Obligations
Starting your own venture may be one of the most exciting things a person can do in life. When it comes to the accounting part, however, excitement can quickly turn into frustration if not managed properly. Keep track of your accounting regularly to make things easier!
Create a list of periodic tasks for yourself and/or your employees. This way, you can prevent distractions and mistakes. Many pre-accounting tasks are done on a weekly, monthly, quarterly, and annual basis.
By regularly performing these tasks, you can control the flow of money and keep track of the progress of your business. These records can be helpful when you need to show the status of your business, such as when applying for a bank loan or finding investors. Additionally, by fulfilling your obligations to the government, you can avoid potential penalties.
Remember, by working regularly, it’s in your hands to make the right decisions to grow your business and keep everything under control!
Here are the periodic tasks you should do:
Weekly or Bi-Weekly:
Set aside your Friday afternoons or Monday mornings to follow this list.
- Issuing invoices and sending them to clients
- Entering completed collections
- Tracking overdue collections
- Cashing overdue checks
- Paying overdue invoices and checks
- Following up on unresolved proposals
- Categorizing expenses
- Making supplier payments
Monthly:
Set aside 1-2 days each month to follow this list. Consider the tax declaration dates when setting these dates.
- Collecting and submitting the documents to your accountant (by the 10th of the month). You can find these documents at the end of this text.
- Submitting VAT1 declaration (even if there’s no tax, it should be submitted by the 24th of the month)
- Submitting VAT2 declaration (if applicable)
- Submitting the Withholding Tax Declaration (if filed monthly, even if there’s no tax, it should be submitted by the 24th of the month)
- Stamp Tax Declaration (if tax applies, it should be submitted)
- Making VAT and Withholding Tax payments (by the 26th of the month)
- Paying SGK (Social Security) payments (by the end of the month)
- Monitoring salaries
- Checking if the cash book and accounting accounts match
- Checking credit card and bank accounts
- Preparing or updating monthly balance sheets, profit, and cash flow statements
- Preparing or updating monthly inventory, sales, and other reports
- Evaluating expenses and identifying areas where cuts can be made
Quarterly:
Set aside 1-2 days every 3 months to follow this list. Consider the tax declaration dates when setting these dates.
- Withholding Tax Declaration (if filed quarterly, even if there’s no tax, it should be submitted)
- Temporary Tax Declaration (even if there’s no tax, it should be submitted)
- Preparing quarterly balance sheets, profit, and cash flow statements
- Preparing quarterly inventory, sales, and other reports
Annually:
- Corporate Tax Declaration (even if there’s no tax, it should be submitted by April 15th)
- Corporate Tax payment (by April 30th)
- Preparing the annual budget
- Year-end inventory count
- Paying the membership fee if you are a member of any organization
- Getting the accounting books notarized (by December 31st)
Documents to Submit to Your Accountant Every Month:
- Purchase Invoices
- Sales Invoices
- Professional Receipts
- Retail Sales Slips
- Supplier Receipts
- Daily Z Reports
- Daily Credit Card Reports
- Expense Invoices and Documents
- Payment Receipts
- Collection Receipts
- Bank Receipts
- Monthly Financial Memory Report
- List or Copies of Received and Issued Checks
- Bank Loan Information and Payment Plans
- Employees' disability reports; reports over 10 days must be submitted within 5 days from the report date, and reports under 10 days must be submitted within 5 days from the end of the report period
- Payroll and wage statements signed by employees for the previous month, which should be signed and returned
At Sarbay Accounting, we are here to support you in turning your venture into a successful and sustainable business with solid steps.
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