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Business Recordkeeping Basics

Business Recordkeeping Basics

November 26, 2019
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WHY?

Good business recordkeeping is essential. The government expects you to pay tax on your profits every year, and you will need to know if you are making a profit or losing money.

THE FOLLOWING ITEMS HELP KEEP TRACK OF INCOME AND EXPENSES: 

  • Sales slips, invoices, statements

  • Income and sales journals

  • Bank deposits

  • Receipts

  • Journals or appointment books

  • Check ledgers & cancelled checks

  • Credit card statements

FOR A SIMPLE RECORDKEEPING SYSTEM:

1. Business checking account: Deposit all income into the account and write checks or use the debit card for all expenditures.

2. Business credit card: Use this card for business only and make payments to it from the business checking account.

3. Monthly filing system: In a separate file for each month, keep the bank statement, charge account statement, receipts, and your cash receipts envelope. If you prefer to do everything online, download your statements into monthly folders and scan the receipts.