Bookkeeping and Recordkeeping Tips for Business Owners

26 December,2022

Business account. One of the first things you should do when you start a business is open a business checking or savings account. You may also apply for a business credit card if possible. You should keep your business account separate from your personal account.

Payments for business expenses. You should make all payments by using business account to document business expenses. Use the business account for business purposes only. Indicate the source of deposits and the type of expense in your accounting software.

Payments for personal expenses. Write checks payable to yourself only when making withdrawals from your business for personal use.

ATM Withdrawal or Cash Payments for business expenses: Avoid dealing in cash if possible – whether paying expenses or receiving income. However, if you use cash to pay a business expense, include the receipt for the cash payment in your records. If you cannot get a receipt for a cash payment, you should make an adequate explanation in your records at the time of payment.

Reconciling the business account. When you receive your bank or credit card statement, make sure the statement, your bank or credit card statement, and your books agree. By reconciling your bank or credit card statement, you will:

  • Verify how much money you have in the account,
  • Make sure that your bank or credit card and books reflect all bank charges and the correct balance in the bank or credit card accounts, and
  • Correct any errors in your bank or credit card statements, and books.

If you are interested in our services or have any questions, we would love the chance to speak with you. Please feel free to click on any of our experts here to request for a meeting or proposal.