Some small business owners are lucky and can hire an accountant to manage the company’s finances. Whether or not an accountant can be brought on board, it is still beneficial for the company owner to know a little something about business accounting. Here are some of the basics all entrepreneurs should be willing to do.

It is paramount to keep track of invoices. Many businesses send out invoices to customers, expecting to be paid back quickly. Unfortunately, that does not always happen. Some clients will simply forget to pay off the invoice in the allotted amount of time while others will intentionally try to avoid it. Follow up on all clients. The payback process can be simplified by offering an online payment method.

You also need to save up money for unplanned expenses. You never know when a piece of equipment will need to be replaced or the company’s computer system needs to be upgraded. Have sufficient funds saved away. It will be particularly helpful if the major expense comes during a slower time of the year.

Time needs to be spent updating books. Regardless if your company has an accountant, you personally should review the books at least once a week. This is good for making sure accounts receivable and receipts do not pile up. Through these weekly reviews, you may discover your business accounting is going swimmingly, or you may find that serious changes need to be made.

You also want to keep good records of your company’s inventory. This includes writing down pertinent information related to the date an item was received, the purchase price and the stock numbers. This will help ensuring that no merchandise was misplaced or stolen.

The biggest expense most companies have is labor costs. In addition to base salaries, you also need to keep track of all the overtime that was earned. If you offer your employees additional benefits, then you also need to account for those costs.

Lastly, if you do not currently have an accountant, then you should consider hiring one even if it is for a few months out of the year. Hiring a professional set of eyes to look at your books can give you peace of mind that everything is operating efficiently. During meetings with your accountant, feel free to ask as many questions as necessary so that you understand everything that is going on. With these practices, you will play a more active role in your business accounting procedures.