Book Keeping

Use a computer. As simple as this may sound, it’s surprising how many small businesses only rely on paper. Computer software is available that makes it easy to track income & expenses, prepare tax documents & summarize financials. Make sure your outside bookkeeping agency uses a computer.

Leave an audit trail. Your system is more effective if you can easily & quickly retrace your financial activities (1 year minimum). Steps: • Keep your checks/invoices in numerical order • do not skip check/invoice numbers • keep your business funds separate from personal funds

Get a bank statement with a month-end cutoff. In order to make reconciling your statement & expense tracking easier, synchronize your bank statement with your other monthly records.

Handle & review checks carefully. Never go on autopilot when writing or discarding checks; treat them like cash. Sign checks in a manner that discourages forgery. Always review canceled checks. And if you have a business with multiple partners, consider using a co-signer for your checks.

Quickly and correctly fix your everyday bookkeeping errors by following these 6 tips. #2. Maintain daily records. This is one of the simplest rules: If you don’t keep accurate daily records, you don’t have an accurate way to track the financial condition of your business. What matters most is that you pick a method that...

For many small businesses, the most common bookkeeping errors are also the easiest to fix. Use these 6 tips to help keep your business on sound financial footing. 1. Use the right accounting system. Most businesses use either cash-based or accrual-based accounting. If you use the cash method, you count income when you receive it...