Top 6 Book Keeping Tips

FinanceTax

  • Author Inessa Khaykin
  • Published July 7, 2010
  • Word count 541
  1. Due Date Reminders. This is something a lot of business owners do not do, but really need to having a payroll tax due date reminder can save you a lot of time and energy. No matter if you have a payroll service preparing your payroll tax returns, of if yo are doing them yourself, a check off list of all the reports, as well as a due date reminder customized to your business specific needs, can save you a lot. Consider including things like: due date, report number, time period, government agency.

  2. Audit Trail. This sounds complicated, but trust me, it is not basically, an audit trail is a record of every invoice and check in numeric order. Making sure that you never skip a number can really mean the difference between a good paper trail and one that is missing a vital part. Record every voided check with the others, just make sure to make note that it is (voided)!

  3. Purchase a Deposit Ticket Book. If you are not using a deposit ticket book, you are probably having problems handling your bank deposits or, you are doing it in a way that is harder then it needs to be. Most of the books comes with 50 top copy and 50 bottom copys, the white top copy is the original that you give to your bank, and the bottom yellow copy is what you keep for your records. Nothing gets lost, and a small order of 200 deposit tickets could easily last you 2 years or more, depending on how often you make deposits.

  4. Consistency is Key. This should be a no brainer, but many people like to switch things up and try something new. With this, you lose money by wasting time. When you are keeping your books, make sure to use the same headings and columns throughout the year, do not get the brilliant idea to start labeling something differently halfway through. You are going to give yourself, and your accountant, a headache in the long run if you do, and end up paying him for more time spent on your books!

  5. Bank Statements. Requesting a statement with a (month end) cut off date when you first open your business checking account can save you a lot of time, frustration, and headaches.

The key with this really is to remember to review it every single month, not just toss it unread into a filing cabinet. Go over everything closely, before your bookkeeper or accountant, and make sure there are no unauthorized checks or suspicious spending. You may trust these people you work with, but knowing for sure can save you a lot of time.

Resist the urge to go paperless and keep information only stored online. Having it in paper is solid, unchangeable, and makes a world of difference.

  1. Keep Good Records. Duh! This one is the most obvious on the list, but constantly needs to be repeated! Keeping good records of your businesses financial dealings does make a difference. Bookkeeping should be a top priority for you, no matter if you are afraid of what the numbers are telling you or not. Solid bookkeeping is like the glue that holds your business together. You just will not get very far without it!

http://www.MySimpleAccounting.com Let KJ Accounting & Consulting Group help you with your book keeping and accounting needs. Whether you want us to help you set up your books so you can manage them or you would prefer to have us as your trusted expert to do it all.

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