20 Accountancy Questions For Business Owners

As business owners, we are always busy in our day to day tasks. Knowing our finances can help us take smarter decisions and delegate where it makes sense, while we focus more on the strategic issues in our business.

From my experience, the following 20 accountancy questions can help you improve your financial performance of your business:

Financial Records Management

1. Are all financial transactions being recorded accurately and promptly?
2. Do you regularly reconcile your bank statements with your financial records?
3. Is your chart of accounts properly structured to reflect your business operations?
4. Are you using accounting software that suits the size and needs of your business?
5. How often do you back up your accounting data?

Expense Tracking

1. Do you categorize your expenses accurately to understand where your money is going?
2. Are you keeping all receipts and invoices for expenses in an organized manner?
3. Have you implemented a system for tracking employee expenses and reimbursements?

Revenue Management

1. Are you recording all sources of revenue accurately and in a timely manner?
2. Do you have a process in place for managing accounts receivable and ensuring timely collection?
3. Are you tracking sales and revenue by product or service to identify your most profitable areas?

Cash Flow Management

1. Do you have a system for forecasting cash flow to ensure you can meet your financial obligations?
2. Are you monitoring your cash flow regularly to identify and address potential shortfalls?

Compliance and Reporting

1. Are you compliant with all relevant tax laws and regulations?
2. Do you prepare and review financial statements regularly to monitor your financial health?
3. Is your bookkeeping process designed to produce accurate financial reports for stakeholders?

Internal Controls

1. Have you implemented internal controls to prevent and detect fraud and errors?
2. Do you have a segregation of duties in place to ensure no single person has control over all aspects of a financial transaction?

Inventory Management

1. Are you accurately recording inventory purchases and sales in your financial records?
2. Do you perform regular physical inventory counts to reconcile with your accounting records?

By addressing these accountancy questions, it would be much easier for you to identify areas for improvement in your bookkeeping practices, leading to better financial management and performance.

Stefan Gauci Scicluna

www.gauciscicluna.com