` Small Business Management Audit: ACCOUNTING SYSTEM
AUDIT

ACCOUNTING SYSTEM

  1. Do you have an accounting system that provides a full range of data sufficient to make management decisions?

  1. Does your accounting system provide you with monthly statements?

  1. Do you understand every element of the accounting statements you receive?

  1. Are your books audited yearly by an independent public accountant?

  1. Do you consistently apply break-even analysis and opportunity cost analysis to your business activities?

  1. Are accounts receivable aged regularly?

  1. Does your accounting system provide for the funds and statements needed for payroll taxes and deposits, income tax deposits, and deposits and payments of unemployment compensation taxes and workmen's compensation liabilities?

  1. Is your accounting system adequate for present business and immediately foreseeable growth?

  1. Do you reconcile your bank statements monthly?

  1.   Do you keep wage and salary records on hourly employees?

  1.   Are you adequately managing cash through a cash budget?

Source: U.S. Small Business Administration, Management Audit for Small Service Firms, Small Business Management Series No. 38, Washington, D.C., 1979; John B. Kline, U.S. Small Business Administration, Management Audit for Small Manufacturers, Small Business Management Series No. 29, Washington, D.C., 1979, Small Business Administration, Management for Small Retailers, Small Business Management Series No. 31, Washington, D.C., 1979.

CHECKLIST EVALUATION RESOURCES AUDIT FEEDBACK HOUSE
Before You Start:
A Basic Checklist 		Business Plan
Evaluation Scale 		Small Business
and Entrepreneurship
Resources 		Small Business
Management Audit 		Feedback H o m e



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