A couple of reasons why regular receipt organization and bookkeeping are so necessary for a small business is to keep personal and business financial papers separate. Why do this, you might ask? To not give the government a reason to audit you, and if you were to be audited, your finances would already be clearly marked and in order.
We see this in our business often, small business owners panicked by a letter from the government. Sadly, this is when they start trying to organize five or six years worth of mixed up receipts, invoices, and statements—eek!
Here’s a tip from our office to yours: make it simple. Get yourself a box for each category of paper trail you need. For example, if you are able to claim your company lunches and dinners, label one box “Company Food and Drink Expense.” Of course, make sure you don’t put in any personal food and drink receipts in this box, because then you’d be mixing business with personal. Continue this pattern, and you’ll find it easy to organize your marketing expenses, transportation and gas expenses, stationary expenses, or even product purchases related to your business.
Of course, the tough part is entering the data monthly. Many people get lazy (or simply don’t have the time for it) and let receipts accumulate. Okay, here’s a little plug for what we do (bookkeeping – entering every little number meticulously in spread sheets). So, if you stress it, then delegate!
Call us at 604.353.3134 for a quote for your monthly bookkeeping.