Integra Accounting & Tax Solutions, LLC
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Bookkeeping Articles

BOOKKEEPING ARTICLES

Running a successful business entails keeping accurate and timely financial information.  A clear financial picture allows you to monitor the success or failure of your business. A good record keeping system also provides you with the information you need to evaluate the financial consequences of your financial decisions.

As a small business owner, you probably rely on an outside accountant to do your taxes and prepare financial statements.  However, it is best that you or someone in your organization take on the responsibility of keeping an accurate set of financial records.  Doing the routing bookkeeping chores yourself, however unpleasant it may seem, will minimize your costs of paying an accountant and allow you more control of your financial information and operations. 

For starters, make sure that you file paid bills, canceled checks and other business documents in an orderly fashion and keep them in a safe place. You may use manila folders, filing boxes, or an accordion file divided into “car,” “utilities,” “entertainment” and so on. At a minimum, put receipts in the proper categories throughout the year so it would be easier to total them up at tax time.  Staple the adding machine tape to each folder or stack of receipts.  You are not required to keep records in a formal “set of books;” however, you need to find the best record keeping system that works for you. 

Take record keeping seriously. A perfectly adequate record keeping system for a small business

might include some or all of the following:

 

  • Check register – preferably a separate bank account for your business. Make sure that when you receive your bank statement every month that you prepare bank reconciliation.  This document will help you balance your checkbook. 
  • Summary of receipts of gross income – totaled daily, weekly or monthly. Keep track of where your money comes from, putting notes explaining the origin of all money received
  • Monthly summary listings of expenses.
  • Disbursements record (check register or expense journal) showing payments of bills. This could be a purchase journal or an expense journal where you record all the transactions in which you paid out cash or checks.
  • Asset purchase listing (equipment, vehicles, real estate used in business)
  • Employee compensation record (if you have employees)  

     


 



Integra Accounting and Tax Solutions, LLC
103 E. Market St.
Germantown, OH  45327
(937) 895-4254
FAX (513) 672-2196
brian@1integra.com

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