Today I’d like to give small business owners three tips on ways to have better records for bookkeeping. One of the most important things you can do is to use a professional bookkeeping program. The days of doing bookkeeping by hand are over; you want to get everything computerized and online to help you keep better records. The IRS no longer wants to see hand written schedules they’re asking for general ledgers, a profit loss form and balance sheets. Help yourself now by getting yourself on a professional accounting program. Tip number two is to keep all of your receipts and statements for anything you charge on your credit card or any check that you write. if you’re a business owner, no longer are credit card statements or cancelled checks enough to substantiate your business expenses. The IRS now wants to see the receipts for office supplies or a business dinner or invoices from your vendors; they’re looking for the receipts to back up the expenses from your credit cards or cancelled checks. Tip number three is to get all of your online banking statements now; while the bank says they do keep your bank statements for up to 18 months, but if you’re being audited you could run into trouble getting some statements from your bank. Make it a habit of downloading your bank statement onto your own hard drive for easier access when you need it.
To sum up our three tips, get a computerized accounting program, keep track of your checks, bank statements and receipts and download your online banking materials now. For more information and tips on how you can make the most out of bookkeeping for your business please visit me online at www.CohesiveTax.com and browse through the number of resources we have available to you there.