Hans Kasper, MS-CPA, PSThirteen
Bookkeeping Success Steps
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Failure in business is easy--just don't do anything. However, if you are going to do something, then do it right. That applies to bookkeeping as well. Yesterday, I received a call from a business owner that they had left all of the bookkeeping up to their bookkeeper and now $100,000 is missing and so is the bookkeeper. WOW, that is an expensive lesson.
So here is a list of items that you can do correctly and be a winner.
Keep the receipts for the paid bills and write the check number and the date paid on it. Create 26 file folders--A-Z--and file the bills based on the company or person paid.
Enter the paid bills into your bookkeeping program.
Learn to used the bookkeeping program correctly.
Reconcile the bank statement monthly within one week of receipt.
Enter the credit card receipts into the bookkeeping program and reconcile the credit card account in the program monthly.
Keep track of who you bill and who owes you money. If they do not pay on time, then call them and drive over for the payment.
Prepare your financial statements from the bookkeeping program on an accrual basis and learn to read and understand them. If you are allowed to do so, file your taxes on a cash basis.
Know your breakeven point. To know this, you will have to know how much it cost you to operate the business.
Set aside your State Sales Tax and Federal Income Taxes into a savings account every month and make your payments from this account.
If you are preparing your own payroll, then make the payroll tax payment on time to avoid penalties.
Learn how to read your financial statements and prepare them showing last year's data and the dollar change.
Prepare an annual budget, input it into your bookkeeping program, and prepare your financial statements showing actual to budget amount and the difference.
Determine what your critical tasks are and calendar them so that you will not missing completing these critical tasks.
An extra one for good luck! Have your bank statements mailed to your home and inspect the statements and the checks upon arrival. Also, do not keep large balances in the check account. This will prevent most significant fraud.
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