
                           [FINANCIAL STATUS CHECKLIST]

          What an owner-manager should know:

          DAILY

               1.   Cash on hand.
               
               2.   Bank balance (keep business and personal funds        
                    separate).
               
               3.   Daily summary of sales and cash receipts.
               
               4.   That all errors in recording collections on  accounts  
                    are corrected.
               
               5.   That a record of all monies paid out, by cash or check
                    is maintained.
               
          WEEKLY
               
               1.   Accounts receivable (take action on slow payers).
                    
               2.   Accounts payable (take advantage of discounts).
                    
               3.   Payroll (records should include name and address of    
                    employee, social security number, number of exemptions,
                    date ending the pay period, hours worked, rate  of pay,
                    total wages, deductions, net pay, check number).

               4.   Taxes and reports to state and federal government     
                    (sales, withholding, Social Security, etc.).
               
          MONTHLY
               
               1.   That all journal entries are classified according  to  
                    like elements  (these should be generally accept and   
                    standardized for both income and expense) and posted to
                    general ledger.
               
               2.   That a profit and loss statement for the month is     
                    available within a reasonable time, usually 10 to  15  
                    days following  the close of the month.  This shows the
                    income for the business for the month, the expense     
                    incurred in  obtaining the income, and the profit or   
                    loss resulting.  From this, take action to  eliminate  
                    loss (adjust  mark-up?), reduce overhead expense, pil  
                    ferage, incorrect tax reporting, incorrect buying  pro 
                    cedures, failure to take advantage of cash discounts.
               
               3.   That a balance sheet accompanies the profit and loss  
                    statement.  This shows assets (what  the business has),
                    liabilities (what  the business owes), and the invest  
                    ment of the owner.

                                    
               4.   The bank statement is reconciled (That is,  the owner's
                    books are  in agreement with the bank's record of the  
                    cash balance).
                    
               5.   The petty cash account is in balance (the actual  cash 
                    out slips  that have not been charged to expense total 
                    the amount set aside as petty cash).
               
               6.   That all federal tax deposits, withheld income and FICA
                    taxes (Form 501) and state taxes are made.

               7.   That accounts receivable are aged, i.e., 30, 60, 90   
                    days, etc. past due (work all bad and slow accounts).
               
               8.   That inventory control is worked to remove  dead stock 
                    and order  new stock.  What moves slowly?  What moves  
                    fast?.



