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	Bookkeeping Tips For Small Business
	By Michelle Carley

Feel free to use this tip sheet / checklist as you tackle your own ""do-it-yourself"" organizing projects. If you would like to REPRINT or DISTRIBUTE this information, please click here for reprinting instructions.

• 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
• record voids in numeric order with other items, only denote as "voided"
• assures no gaps in your numerical sequence and leaves a proper trail

• 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

 

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