How to keep accurate financial statements with your small business

Here is how to keep accurate financial statements with your small business. As a small business owner, you have many things that you have to be concerned with every day. The thing is that worrying about your financial statements does not need to be one of those things. Here is how you can keep accurate financial statements easily.

Most of the time, you will rely on your accountant for taxes, and the final preparation of your financial statements. However, the last thing you will want to do, is have tax time come and your information is inaccurate. If your small business is not such that you will have an accountant hired, you will want to know what it is you are going to need to have accurate in your financial statements.

If you are the person who organizes the financial information in the office, there will be a few things that you will want to keep in mind. Starting with the knowing that there are routine accounting chores that will need to be kept up for successfully accurate financial documentation.

When you are the person who does these routine accounting and financial tasks, it may be somewhat boring. However it will save you money in the long run by not having to hire an accountant to do these for you, and will prevent fees for tax problems. It will also give you control over what is happening in your business at a finer level.

Start out by making sure that you have accurate and easily tracked filing system. In this you will want to file the bills paid, the bills owing, the cancelled checks, the bank statements, and any other financial records that will need to be used for financial tracking.

There are several different options you can use for filing these documents. You can either use envelopes; manila folder, filing cabinets, boxes or what ever makes it easier for you to organize your documents.

Labeling the folders with different types of financial labels. This would be like; entertainment, utilities, cars etc. Then you will want to in the minimum be putting the receipts for these different categories in the different folders.

There are different record keeping systems available for tracking these expenses, however in the minimum you will at least want the receipts separated, however tracking them on paper will save a great deal of hassle in the long run. Whether you are using a set of books, or a computerized program. It will need to be what you find is the easier choice for you.
These are some things you will want to keep in your accurate set of record keeping plans for your small business.

1. There should be a summary of receipts from the gross income.
2. A check register from your separate business account.
3. Disbursement records that are the check registrar and the expense journal that show the payments of bills.
4. Employee compensation of payments records.
5. The monthly summary of expenses record.
6. Asset purchasing lists and receipts.

As you keep track of all of these things, you will find that it is easier at the end of the year to provide your accountant with accurate financial information. The key is to make a schedule of consistently doing your books for the best records possible. This is the best way to keep accurate financial statements with your small business.