Easy Bookkeeping Step 1: Record Keeping

Google+ Pinterest LinkedIn Tumblr +

The key to easier bookkeeping is to keep good records.  Keeping on top of your records will not only make your life a lot easier but could cut the fees you pay for bookkeeping and accounts preparation.

As a Chartered Accountant, here are my top 10 basic tips for keeping good records. Some may sound obvious but it’s amazing many people do not follow these essential guidelines.

  1. Keep receipts for ALL business payments regardless of the amount.

  2. Try to avoid making personal payments from business accounts, it only complicates matters.

  3. Make sure each receipt shows the date and method of payment whether cash, cheque (with cheque number) or card (specify which card).

  4. Keep receipts together in a safe place (a spike, tin, folder) – do this on a daily basis to avoid losing any receipts.

  5. Keep all bank statements together by account and in chronological order.

  6. Make sure all cheque stubs are completed with date, amount, purchase details etc and keep all cheque book stubs in a safe place.

  7. Keep all delivery notes, this is particularly important as you near your year end.

  8. Keep tight controls over the petty cash tin, all income and payments need to have back up.

  9. Keep a running total of the petty cash and make sure this ties into the actual cash in the tin, do this on a monthly basis.

  10. Invoices should be properly numbered and kept in chronological order.

Share.

About Author

Leave A Reply