When you start a business, its important to keep detailed records. One of the biggest mistakes I see when a business opens is that daily transactions are not stored for later use. This makes life difficult once the end of the year comes around and doesn’t give you a clear picture of whats going on with your business at any given time. Here are a few pointers of how you can keep good records.
- Use a business debit/credit card for all of your purchases. When operating a business, its important that you keep all receipts for your transactions. By using a debit/credit card, you will create another database of all the money you spend besides adding up all of the receipts.
- Enter your Expenses & Incoming Funds daily. Being organized is important for your businesses long term success. A program such as Quickbooks will help keep your expenses and income in order. By spending a few minutes each day doing this, you will be able to achieve a snapshot of your business at anytime while making tax time a breeze with a simple click of your mouse.
- If you are using partners or subcontractors, be sure to collect all information before works starts. Filling out the appropriate paper work including all required information such as company name, individual name, tax ID number, and address will make life a breeze when payday comes. Use checks to pay partners & subcontracts so there is a record with your bank. If you have internet banking options, you can even mail these checks out for FREE!
Try these three simple steps to tighten up your accounting! It’s never too late to start. Even if its already in the middle of the year, start now and get on the right track!