BOOKKEEPING 101 Tips to Save time on Bookkeeping Expense
- Keep all receipts and ask for receipts when not supplied one (example – at a restaurant for client meeting). The debit slip is not enough – it does not specify what was purchased or what taxes were included.
- Please make sure that all receipts given to Checks’n’Balances for the business are business-related. Any personal receipts paid by the shareholder/owner do not apply to the business. However, any personal purchases made through the business bank account or credit card must be included with the company’s file, but must have “Personal Purchase” written on the top of the receipt or beside the item that was a personal purchase.
- Keep all invoices from suppliers or vendors. Always crosscheck your packing slip (what you actually received) to your invoice to catch any errors. Staple any packing slips and purchase orders to the invoice. When making payments on an invoice, please note the date, payment amount, and method of payment on the invoice itself.
- If a payment is made on an invoice at a later date, please note the date, payment amount, invoice # the payment applies to, and the payment method. It is easier to write down your payments at the time they are made and keep the payments list with the rest of your books than it is to have to try and remember them later when your books are being completed.
- To keep your files organized, it is easiest to have everything sorted by month. This makes it easier for you to determine if you are missing bills that may appear on the monthly bank or credit card statement.
- Any receipts for meals should be business-related. To ensure it is business-related, please note the reason for the meal (example – client meeting) and whom it was with.
Keep all bank statements, credit card statements, and any government remittance forms. These are necessary in order to complete your books and to remit any taxes or source deductions to the government. Late submission of government remittance forms will result in possible penalties, interest, and more, so please make sure they are paid on time.
- When making a sale to a customer, the invoice should display the amount and the GST and PST (if applicable) charged on the sale, with the total amount of the sale. Any GST and PST collected must be remitted to the government, so it should be clearly stated on the sales invoice.
- Keep all payroll records. They need to be entered and source deductions will need to be remitted to the government.
- Organization of your books can be easy. Find one specific place that you will keep all your bills and records. You could have an organizer tray, or accordion file folder with each month labelled. Each time you get a receipt, just remember to put it in its month.