subject: Bookkeeping 101: A Guide Toward Successful Recordkeeping [print this page] Yes, bookkeeping is an unpopular chore in business management but sadly, it has to be done.
If you have a dirty pile of receipts, bills, and reports on your desk, devoid of any filing system known to man, then you must be doing something wrong. And if you have any plans of staying in business, then take this advise-roll up those sleeves and get ready to organize!
There are 4 basic questions you should ask yourself during a bookkeeping session.
4.Do I have everything?
This includes receipts, stubs, bills, statements, inventories, credit reports, invoice, and even unopened mail. To achieve accurate bookkeeping, then you must have all possible data to make a solid monthly bookkeeping report.
5.What documents should I keep and get rid off?
Bookkeeping reports often become inconsistent because of the data used to make it. Staple documents to be kept are living wills, bank records, and IRA contributions. Accounting and bookkeeping services will usually ask for these papers every time. However, monthly bookkeeping tasks will need the most current tax returns, receipts, checks, stubs, and invoices. You can continue keeping these documents for the next 7 years for record purposes, but after that time, you can shred them.
6.What kind of filing system should I use?
The answer to this actually depends on what business you're in. Retail bookkeeping is different from school bookkeeping. Restaurant bookkeeping is not the same as bookkeeping for doctors either. But the important thing to remember is to make a folder for every possible category of financial record. Create files for bank accounts. This folder should contain monthly statements. Have a separate file for credit card receipts and statements, insurance, investments, loans, tax records, and wills or trust documents. You can also make a file for To-Do's, bills, warranties on goods, and inventory records. Accurate bookkeeping equates to organized filing, and so, putting everything in the right place will make it easier to do the books.
Another way to do it is to simply keep your records into 4 separate stacks. One is for bills and expenses, the second is for "To Do" or "To be read", third is for "File" and the last for "Shred." This filing system is a simple yet efficient prelude to the entire bookkeeping process.
A new way of doing this is getting the help of an online bookkeeping service company. Online bookkeeping is fast, easy, and surprisingly affordable. Employing the help of your computer and the Internet saves you time. There is also less probability for error. Some online bookkeeping companies even do the filing for you so you get cheap and accurate bookkeeping at the same time.
7.Where should I keep my records?
There are two common places you can put your documents-inside a filing cabinet or in your computer hard drive. But you can actually choose both so you have backup records for bookkeeping and accounting. Just make sure you use a proper and efficient labeling system for everything so you'll know where to find what you need for your monthly bookkeeping process. Make duplicates if you have to.
Bookkeeping is in no way a glamorous job, but proper execution of this is vital for any small or big business. The larger you get, the more organized you need to be. Professional bookkeeping takes a lot of patience, organization, and dedication so if you are getting the help of an outside bookkeeping service company, be sure they are certified and trustworthy of such an important task.
by: RightmyBooks
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