MARCH 17, 2015
Thank you for taking this journey with me – a journey of 20 tips for your small business. If you’re just finding us, go back and look at the first 15 for some helpful things to keep in mind when you’re setting up and running your business. Those of you who have been with me since Tip #1, I hope you found this information helpful, even if it was just a quick checklist of everything you’re already doing so you’ve got your bases covered. Have any tips of your own? Send them my way and I’ll include them next time. Happy bookkeeping!
Michelle Carley, Owner, Big E-Z Bookkeeping
Bookkeeping Tip #16: The Do’s and Don’ts of Bank Statements
When opening a business checking account, you should request a statement with a month-end cut-off date. This will save you time when reconciling your checkbook. The closer the cut-off date to the month end, the fewer checks you will need to record as outstanding. And don’t toss those bank statements and canceled checks into a filing cabinet without reviewing them. Resist the urge to do this! As soon as your statement arrives, review it before anyone else sees it, including your bookkeeper or employees. That way you can catch unauthorized checks.
Bookkeeping Tip #17: Deposit Ticket Books
How do you handle your bank deposits? One easy way is to record your daily deposit in a deposit ticket book. Generally, these books come with a white (original) copy and yellow (duplicate) copy in books of 50. For a small business, an order of 200 duplicate deposit tickets could last 2 years unless you make deposits everyday. As you write each deposit ticket, give the white copy to give to the bank and leave the duplicate (yellow) in the book. That way nothing gets lost.
Bookkeeping Tip #18: Keep Good Records
Many business owners don’t keep good records. Some don’t understand bookkeeping; others understand it, but may be afraid of what the numbers might tell them. Think of it this way–bookkeeping is the glue that keeps your business together. If your records aren’t in good shape, the business could fall apart. A healthy business is monitored through its records on a regular basis so you can find problems and correct them before it’s too late.
Bookkeeping Tip #19: Be Consistent
Consistency is essential to successful business bookkeeping. For example, always be sure to head your columns the same way each month throughout the year. This small matter of consistency will save you and your accountant time and prevent aggravation.
Bookkeeping Tip #20: Last But Not Least—Keep An Audit Trail
An audit trail is nothing more than a record of all your invoices and checks in numerical order. The thing to remember is to never skip numbers. Record even voided check and invoices and you should be fine when audited.