It is imperative small business owners keep accurate financial records. The survival of your company depends on it. The data you maintain will be used to file taxes, apply for loans, and may be requested by potential clients. The amount of time and effort you spend setting up your bookkeeping system will more than make up for the potential disasters you will avoid. Here are a few key tips that can get you started down the right track:
- Separate your personal and business transactions. It is illegal to claim personal expenses through your business. Keep your business checking account and all business-related financial records independent of your personal records.
- If you are not an expert in bookkeeping or accounting, find someone who is. The earlier you can get someone in place the better off you will be.
- Keep all receipts, invoices, and any records related to your business for at least five years. You will need to refer to them for tax and audit purposes.
- Reconcile your accounts consistently on at least a monthly basis. This helps to keep you informed of the profitability of your business and where there may be potential risk or opportunity.
Contact Engage Forward LLC to learn more and implement user-friendly techniques to keep your professional and personal financial records in order.