Maintain Daily Records. Allocate 15
minutes everyday to do a little bookkeeping each day. This
is one of the most basic rules. If you don't have
accurate records, you don't have an accurate picture of
your business. There is no right or wrong record-keeping
system. What matters most is that you have a record-keeping
system and you use it.
Bank account statements. Always request a
statement with a month-end cut-off date. This will make it
easier for you to reconcile your statement and track
Keep an audit trail.The goal here is to be
able to quickly and easily retrace your company's
financial activities. Record all of your invoices and
cheques in numerical order. Never skip numbers.
Be consistent. Consistency is the key to
successful bookkeeping. Most of us tend to make things
harder than they need to be. Keep filing simple and use
consistent wording in ledgers and in software files. This
will save you and your accountant time at year-end when you
are preparing statements and reports.
Use a computer. Bookkeeping software makes
it easy to track income and expenses, prepare tax documents
and summarize your company's financial activities. Make
sure that you are trained in the basics, even if you are
outsourcing. Take the time to set up your financial
accounts correctly from the start. Always ensure that
records are backed up for safekeeping.
Cash or Accrual. Choose the right
accounting system for your business. Cash accounting is
much simpler - you count income when you receive it and
expenses when you pay them. In the accrual method you count
expenses when they happen, not when you receive or pay
Know your bookkeeping deadlines.