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Our Top 10 Bookkeeping Tips

 

How to make your day to day bookkeeping responsibilities both easier and more cost effective for your business.

 

  1. Keep all receipts. At the end of each day, gather all your receipts and put them in one spot. A file folder or an accordion file separated by month will keep you organized.
  2. Do not combine business and personal finances. Have a separate bank account and ideally a separate credit card as well for all your business transactions.
  3. Record all deposits accurately. Identify them as either loans, sales revenue or personal cash deposits to avoid paying taxes on money that isn't income.
  4. If you purchase something online, print out a receipt or set up a separate folder in your email account for all email receipts.
  5. Track your expenses. Write on all your receipts what it was that you purchased if it is not obvious. If your receipt was for a meal, include the person that you had your business meeting with and what it was about.
  6. Have your bank statement end on the last day of the month. This will make reconciling easier and allow statements to line up with monthly budgets, cash flow forecasts and government remittances.
  7. Track your mileage. Keep a mileage logbook in your vehicle. Record your car's mileage at the beginning of the year and the end of the year. Every time you travel for business, record the start and end mileage.
  8. Maintain an audit trail. Be sure you can substantiate all of your expenses for your tax records.
  9. Avoid withdrawing cash from your business account as it is harder to track. Write a cheque instead or use a debit or credit card.
  10. If you don't have the time to do your own bookkeeping then hire us to do it for you!