PayTech is designed to make your accounting organization needs simple. If it were up to us accounting wizards, we would tell you to run all your accounting through the Gringotts Wizarding Bank. (Unfortunately, they don’t usually take muggle money.) That is why you have your friendly neighborhood accounting wizards at PayTech. Here are a few tips for accounting organization techniques that will keep you on track and organized.
Computerized accounting organization programs should always be used to track income and expenses when it comes to small businesses. It will allow you to run accurate projections and reports about your financial situation as well get your through tax time much easier. Although this will help, you will still need a system for organizing your accounting paper trail. It is best is for this system to mirror your electronic system. It should have the same accounting structure, same chart of accounts, and the same categories. Keep this in mind as you set up each part of your small business accounting file system.
It is always a good idea to keep hard copies of sales receipts and proof of the payment method, whether it was check or a credit card. If your bank accidentally deposits your check into someone else’s account or credits the wrong amount to you, having a copy of the check will help them correct the problem faster. If a customer disputes a charge or claims that you processed a fraudulent purchase, your merchant account may require a signed credit slip in order to rule in your favor. So print out each order or service record and clip a copy of the check or charge slip to it then file either chronologically (by month) or alphabetically (by the name of the customer). You’ll be glad you did if you need to refer back to this information later.
Your expense files should mirror your company’s electronic chart of accounts, as mentioned earlier. However, you don’t have to get quite so detailed. Set up generalized filing categories, which allow you to group different types of expenses together into one folder for example: marketing, office supplies, furniture and equipment, professional services, business administration, travel, and professional development. Use whatever categories make sense to you, just remember that the goal is for you to be able to easily find an expense record if you need to refer back to it in the future.
Filing notices and statements that relate directly to your taxes will be another part of your accounting responsibilities. The easiest solution is to have a folder called current taxes in your file, as a catchall for collecting this paperwork. Then when tax time rolls around, you can hand this folder and a disc with your small business accounting organization records on it to your accountant. Of course, you’ll also want to have separate files for storing previous years returns and supporting documents. Those can go in your archive files, rather than your active filing system.
Just taking a few minutes a month to organize your financial paperwork and update your small business accounting files will save you hours or days come April 15th. You will also have a clear idea of your bottom line, be able to pay bills on time without late fees, know which customers owe you money, and avoid any nasty financial surprises.
So there you have it. Some great tips to keep your accounting organized and smoothly run. If you have any questions about how we can help please give us a call or send us an email!
