Below are some tips to help you 'get ready' to do your books - what YOU can do to save time and money!
For more comprehensive guidelines, we have provided a pdf guideline document for you to print and keep. You will need Acrobat Reader.
|Bank Reconciliations:||Have your bank statements available. Have your cheque book with cheque stubs (or duplicate cheques) handy.|
Keep the 'paid invoices' separate from the 'unpaid'
or 'outstanding' invoices.
|Bills/Invoices You Need to Pay:||Indicate on the invoice the amount if not in full or the reason why not paid in full. Don't forget to also indicate date paid and cheque number.|
|Receipts/Expenses:||Indicate on receipt what it is for (auto? gas?). If it involves meals, indicate who it was for (example: Joan from Anyday Crafts, Jim of Jim's Hardware, etc.)|
|Credit Card Bills:||Treat the same as expenses indicating which are personal (if applicable) or which business account it should be allocated.|
|Back Up Your Data:||
It is very important to back up your computerized bookkeeping figures. A safe way to do this would be to use CD(rw)s, DVD(rw)s, and/or memory sticks. Should your computer or server crash or information get contaminated, you would have your back-up.
** When you are making deposits by ATM, try to separate cheques rather than one large deposit representing 2-3 client payments. This will make it easier to match your bank statement to your accounts receivable invoices.
**If you are a very small business, a simple way to begin your filing system is to acquire an accordian-type filing folder. Some are of cardboard and others are a little fancier made of coloured plastic, etc. Make sure you have at least 12 pockets so you can label one pocket for each month. All bills, statements, etc., are placed in the appropriate month. This may not sound like a very sophisticated filing system, but for those who hate to file, this may be the answer.
"Because not all books are created equal."
In The Black Bookkeeping