SMALL BUSINESS RECORDKEEPING

IMPORTANT NOTICE TO ALL NEW BUSINESS OWNERS

If you don’t organize your records from the start, and stay on top of your record keeping chores daily, I can almost guarantee that you will come to grief - probably sooner than later!

Eight Tips CRITICAL to business record keeping success and sanity:

1. Never mix business and personal paperwork. For instance, by using one checkbook or credit card for business and personal use.

2. Make sure your records can be understood by anyone, not just yourself. I strongly suggest you use one of the widely accepted automated software record keeping systems. My personal recommendation is QuickBooks Pro.

3. Always use the memo section of your checks to record the specifics of the expnese.

4. Record transactions as they occur, or at least on a daily basis. Reconcile bank statements the day you receive them. Retain all bank statements.

5. Get help before things get out of control. Your Accountant, or Business Counselor should be able to help, or at least point you in the right direction when help is needed.

6. Develop and maintain a good back up system. If you are using computer software back up daily onto disk or jump drive (my preference) and store the disk or drive in a fire resistant cabinet or other safe place. All permanent records of the business like licenses, contracts, organization filing papers, leases, etc. which are paper documents, should be copied or scanned electronically, and stored the same way.

7. Unless you have a tax accounting background, plan to have your taxes prepared by an Accountant (at least the first year). Check with the Accountant to make sure you understand what records will be required, and that you will be able to supply them.

8. Prepare and carefully review a Profit and Loss Statement and a Balance Sheet monthly. Flaws in your record keeping system (or mistakes) will show up there, and can be corrected in a timely manner before they get overwhelming.