Five Tips To Ensure Good Record Keeping For Your Books
Bookkeeping is one of the most tedious tasks that anyone has to handle. Whether an individual, a business or a company, if you are not going through your account statement correctly and thoroughly, you might find it quite challenging to get through the tax season. There are other challenges to get through, and we always suggest working with a professional if you want the best results.
When it comes to bookkeeping, we work with clients and teach them how they should get through their books. They would then be able to handle the processes themselves and stay ready for tax season. When we receive these books, we are in a better position to coordinate and file taxes because we see their deductibles and other costs, as well as the amounts that came in.
Here are a few pointers that companies should follow if they want to keep good records of their books. It would also make the process of filing their taxes at the end of the year a lot simpler.
Tip #1: Make sure all your receipts are kept in one place
When claiming expenses, whether business or otherwise, you should have the payment receipts. You could use the receipts to work as a business expense and even get a deductible which would reduce the amount you would have to pay in tax at the end of the year.
Tip #2: Organize your receipts by month and date
When going through your accounts, you have to get through the statement month-wise, and it would help make the process easier if you had your receipts in order. If you are not organized, you would not be able to find the right receipts, you might even have trouble finding the right amounts because sometimes there were two payments made toward one purchase.
Tip #3: Keep yearly receipts together
Just because you have handled your taxes for a year, you would not be able to get rid of your receipts and move on to the next year. Most companies advise their clients to hold on to them for the upcoming several years. We would suggest that seven years is the sweet spot, but we would talk about keeping it for upto ten to be safer.
Tip #4: Bring the receipts to your bookkeeper/accountant
When you are working with a bookkeeper or an accountant and they mention how you should be working through your books, you should get your receipts back to them so that they can account for the costs. If you know about a cost you made and want to claim a deductible but do not have a receipt, your accountant might find that a bit challenging and not be capable of getting through the process.
Tip #5: File the receipts yearly in a safe place
After you finish using the receipts, you should have them kept in a safe place. Pick a room that is not damp and would be safe, away from infestations and other changes that could cause issues. If you lose the receipts, you might have a challenge in the long run when they are a requirement. Being particular about the smaller aspects to get through the process is probably the safest bet when working with accounts and taxes.
If you are looking for assistance with a Bookkeeper in Steinbach, Manitoba, connect with us at Genesis Bookkeeping Ltd. We work with our clients to understand their requirements and where they stand when it comes to their understanding of accounts and bookkeeping. We then provide solutions and assist them with understanding how the basics should be handled, if they want to do it themselves. We believe that they should focus on what they are good at, and we can assist with their books, which we have mastered. If you want a better understanding of the services we provide, please click here. If you are looking to connect with us or think we can assist with one of your needs, please click here.