Bookkeeping: Fundamental to the Success of Your Business

If you are a business owner you know that bookkeeping can be a kind of a daunting task especially if you put it off until the end of the year. So in today’s article we are going to talk about bookkeeping as it is fundamental to the success of your business.

Have a Bin in a Central Location

It is important to have a bin in a central location where you can just dump all those receipts, all of those things that you need to file, any cheque duplicates. This is just wonderful so that you know where everything goes when it comes time to record everything.

Have a Tax Day

Plan a day that’s easy to remember that happens once a month where you can go through everything. Maybe the first Wednesday of every month or maybe there’s a certain day where you don’t have anything in your schedule and you just know that day is going to be your business day and you’re going to dedicate it to this kind of task, that’s a perfect day to get your tax stuff done.

Have a Checklist

Have a checklist to use on that day that you just go through and mark down everything that you did and it has all the steps of what you need to do in your particular situation and it really helps you to not get sidetracked and to know exactly what you need to do. You can look through emails for receipts in case you forgot to print one for something you bought online. You can file your receipts, file other items, clean out the secretary desk and then any mileage for any training. This chart really helps you to stay focused and not get distracted so you know exactly what to do when you sit down.

Categorize Your Purchases

Next is to go through your receipts and other related stuffs and categorize them. You can categorize by grocery receipts, standard purchase receipts; like things from Target you know things you buy on a normal basis and the non-standard receipts; things that you don’t buy often like tires or whatever is peculiar to your kind of business. And again categorize any checks you have separately, that way you know that is kind of a different kind of purchase as well. Organize them by date because it’s much easier to enter them in chronological order.

Go Through Each Receipt

Before you sit at your computer or your book where you keep everything, make sure you go through each receipt. Now that it is organized and in its category and by date, go through and write on there what type of expense it was do any adding then so it’s kind of like assembly line style you’re doing just one thing at a time you’re not sitting at the computer adding it up entering it and then going to the next one you’re having, each step is taken care of on its own as a group so for this step you just go through you write on there.

So those are my tips for helping you stay on top of your taxes and your bookkeeping processes.