Helping Small Business in Accounting, Bookkeeping, Quickbooks, & Taxes needs.

Bookkeeping Tips For Small Business

• ·        request a statement with a month-end cut-off date
• ·        saves time when reconciling records with the bank statement every month
• ·        fewer checks you will need to record as outstanding
• ·        don't file statements and canceled checks without reviewing them
• ·        review statement immediately for unauthorized checks

• ·        consistency is essential to successful business bookkeeping
• ·        head your columns the same way each month thru the year
• ·        will save you and your accountant time and aggravation
•  

• ·        cash accounting system is much simpler
• ·        IRS only allows you to use accrual method if you have $5 million in sales
• ·        or if you carry a large inventory
•  

• ·        deposit all cash immediately at bank or credit union once it is received
• ·        ensures that all income will be properly recorded
•  

• ·        record your daily deposit in a deposit ticket book
• ·        come with a white (original) copy and yellow (duplicate) copy
• ·        give the white copy to the bank and leave the duplicate in the book
•  

• ·        most of us tend to make things harder than they need to be
• ·        don't need separate categories for paper, pencils, printer cartridges, etc.
• ·        all these items can simply be listed under "office supplies"
•  

• ·        it's a good idea to follow a payroll tax due date reminder
• ·        whether you have a payroll service or you're preparing returns yourself
• ·        follow a check-off list of all the required payroll tax reports
• ·        include due date, type of tax, report number, government agency, period covered
• ·        also indicate if you need to submit money, a report, or both
•  

• ·        start new file folders each year for paid invoices and paid bills
• ·        don't need a folder for each customer or unless large volume of business
• ·        get by with a folder for all customers from A - C, D - F, and so on
•  

• ·        you will want to run dual systems for a few months
• ·        be sure both systems have same totals before dropping the paper
•  

• ·        nothing more than a record of all your invoices and checks in numeric order
• ·        the thing to remember is never skip numbers

• ·        bookkeeping is the glue that keeps your business together
• ·        if your records aren't in good shape, the business could fall apart
• ·        a healthy business is monitored through its records on a regular basis
• ·        you can find problems and correct them before it's too late
•  

• ·        if no time for daily bookkeeping, when will you process a month's records?
• ·        different people use different record-keeping systems
• ·        what matters most is that you have a system and use it daily
•  

• ·        get a metal cash box to hold currency and coins
• ·        any money used is replaced by the receipt for that purchase
• ·        cash plus receipts should remain at a constant dollar amount
• ·        continue using the petty cash box until you run out of cash
• ·        replenish the box by writing a check for "cash", expensing all the receipts
• ·        cash the check, put into the box, starting back with the same amount again
•  

• ·        if use a many invoices each month, may want to have invoices preprinted
• ·        will look more professional and you will probably get paid quicker
• ·        print invoices with perforation -- tear off and return it with payment
• ·        print your name and "remit to" address on both sides of the perforation

• ·        determine expense categories by looking at tax return you will file
• ·        if you file a Schedule C, get a copy of a blank Schedule C
• ·        write down all the categories that apply to your business
• ·        include those categories when you set up your bookkeeping system

• ·        keep all your records for one year in one box
• ·        bank statements, checks, financial statements, paid bills and other backup
• ·        also include a copy of that year's tax return
• ·        label with the year and contents, then store it somewhere accessible

• ·        many think they are taxed on all the money they take out of their business
• ·        sole proprietors taxed on the profits of the business, not the revenue
• ·        estimated income tax payments should be based on profits
•