Create A Great Filing System

When you run a business, you have to maintain the books. Without good bookkeeping you won’t be aware of the financial health of your business, you will be unaware of the taxes owed and you will break compliance rules.

Here’s how you can create a great bookkeeping system.

Get Folders

Despite the digital age, a lot of paperwork does still occur. You need to ensure that you file your paper receipts, bills, and bank statement are filed in the folders.

Label

If you want to be able to find your documents easily later on, you will label your folders. There are a number of ways you can label your folders. You can do it on the basis of financial account, status of the payment, or income-expense.

Get Started

Conducting your bookkeeping processes in an order helps.

• Paid Invoices
  Ensure that all the paid invoices you file have the transaction number, date of payment, and date of deposit.
• Checks
  Have copies of the checks along with the deposit slip attached. Additionally, write the invoice numbers on each check for cross-reference purpose.
• Commission Statements
  Fee or commission statements contain all the information by themselves. File them in your income folder.
• Deposit Slips
  Attach your deposit slips along with your check payments.
• Bank Statements
  Note the deposits and credits on the bank statements and ensure they are correct.
• Bills
  Check the date, amount paid and the transaction number and ensure they are correct.
• Receipts
  Receipts come in all sizes so the best way to deal with them is to staple them together.

Digitize Everything

Ideally, you should create copies of all your financial documents. However, today, most opt to digitize everything. In such a case, ensure you have a backup of all the information. Don’t keep all your information locally stored. Storing on a safe and secure cloud server is a must.
Use a Bookkeeping Software

There are many bookkeeping applications available. Many of them are free or affordable. Bookkeeping applications offer you a structured and easy way to maintain your books and accounts.
From tracking expenses, creating estimates, synchronizing mail invoices, to tax assistance, they come with tons of features.

Single or Double Entry

These are the two most common forms of bookkeeping.

• Single entry gives you a simple outlook to your business, detailing the gain and loss.
• Double entry creates a detailed picture of the business that goes beyond gain and loss.

If your business is a small one and does not tackle large volume transactions, then single entry might be right for you.

Regular

Ensure that you utilize your bookkeeping system and keep updating your books. It’s best that you set weekly or monthly deadlines.

Consult with a Professional

It is always best to consult with a professional accountant. Making a mistake in bookkeeping can have serious repercussion. You want to ensure that your bookkeeping system is foolproof.
When you face trouble with setting up your bookkeeping system, reach out to ATS Accounting. We’ll be more than happy to help out.