TC: BURIED IN ACCOUNTING PAPERWORK

Every week I see small business owners either buried in paperwork or totally ignoring paperwork. This important aspect of business growth has to be systematized and kept up to date. I frequently mention that you should run your business as if you were going to sell it and business buyers are very interested in seeing your records.

Your challenge this week is to review your internal record keeping system and to make sure that it is up to date and that you are using an automated accounting system such as Quick Books.

The following are important documents that should be posted. If done weekly, most small business owners can get the majority of their accounting, bill paying and record keeping completed  in less than 2 hours a week.

Purchases: Every time you purchase anything for your business make sure that you get an invoice or a cash register receipt.

Invoices: Every time you make a sale you should generate an invoice and describe all the information pertinent to that sale.

Bank Deposit slips: whether the bank does or does not require a deposit slip, make sure that all money received in your business is noted on a deposit slip and deposited in your business bank account.

Copies of Checks: a copy should be kept of every business check you write.

Outstanding invoices: when payment is not received upon the delivery of your product/service, always send a statement stating how much you are owed and include the purchase date.

Bank Statements:  Bank Statements should be reconciled on a monthly bases.

I repeat this challenge only because of its importance. If record keeping is a challenge, then hire an outside firm to maintain your system. The cost is not that much and its value is more than worth the investment.

For most small business owners accounting and record keeping is not a major time consuming effort, but it is frequently ignored. The reason for this is either procrastination or the thought, “I can always catch up with this later”. Are you in compliance?

It always seems impossible until it’s done.  Nelson Mandela