5 Explosive Bookkeeping Tips
-
- Always keep your business finances separate from your personal finances. Don’t give the tax auditor a reason to audit both.
- File all your tax compliance reports on time to avoid penalties, even if you can’t pay the amount owing.
- Keep organized by:
- developing a method for handling all your paperwork;
- entering your bookkeeping data in batches; and
- reviewing your bank statement and financial reports monthly.
- Audit proof your records.
- Keep all your receipts, no matter how small the amount and make sure they are legible. Receipts you must keep include debit receipts and credit card receipts.
- Deposit all your business cash flowing into the business … so you can prove what was income (taxable) and what was contributions or loan proceeds (not taxable).
- Keep a business journal to diarize your logic for your business ventures. It will help show you incurred the expenses with the expectation of profit.