KEEP ACCURATE RECORDS.
- Set up a recordkeeping process to keep track of your business accounting information. Be sure you understand basic accounting principles. Consult with an accountant or bookkeeper if you need help.
- Use a small business accounting software application to capture all transactions and generate reports. Many are easy to use and ensure accurate calculations and reporting.
- Be meticulous. Accuracy and consistency are essential to keeping good accounting records.
ORGANIZE THEM PROPERLY.
- After all transactions and entries for one month have been entered, print hard copy reports for reviewing the financial status of your business.
- Use a Hanging Classification Folder to organize the reports. The hangers keep files neatly upright in drawers, and fold out of the way during use.
- Use separate filing surfaces for balance sheet, income statement, aging, sales reports, bank reconciliation and journal entries. Fasteners hold the reports securely in the file, and keep them separated and in proper order.
- Add Folder Dividers to panels for more subdivisions, such as separating sales reports by customer. Each divider has its own fastener, so adding pages anywhere in the stack is easy.
- Write the names of the reports on the divider tabs to help find them quickly. Label the folder tab with the month and year.
DO IT MONTHLY.
- Create a new accounting file each month. Use a checklist to make sure you have made all entries and reconciled accounts before printing the reports.
- Review the reports every month to assess the health of your business and identify areas that may need attention. Use them when you meet with your accountant and tax advisor.
- Keep all of your monthly folders in a secure file drawer.
Components of this Organomics Idea include:
- Hanging Classification Folders
- Folder Dividers with Fastener
Learn more about these Organomics ideas:
Better organization with Fasteners and Dividers
Find it faster using Straight-Line-Filing
Recordkeeping principles for small business accounting