Little thought is put into those pieces of paper, commonly known as receipts that seem to just overfill our wallets, purses and handbags...if you have a business, this lack of thought could be costing you money!
Quite a number of businesses give receipts that are printed on paper that, if left in the heat for too long, fade. That faded receipt is one that you cannot claim as your accounts person, as wonderful as you think they may be, are unable to read so therefore are unable to claim for your business. Imagine, if you added up all of those receipts, that you could not read, 'accidentally' blew out of the window, got screwed up and thrown in the rubbish bin, just how much money you are actually giving away!
A cost effective method of keeping those tiny receipts that are easy to lose, is to purchase a small expansion file - you can purchase ones that are just the right size for keeping those receipts in until it is time for your bookwork to be done....and leave more money in your pocket at tax time!
Monday, April 6, 2009
MANAGING YOUR RECORDS - SIMPLY!
One of the many things that costs small business owners money is the lack of effective record keeping. One of the many things that I have found with business owners when managing , is how little importance is placed in keeping records in a safe, easy to find manner. You don't have to have the 'u beaut, latest technology' to keep records - the simpler, the better!!
The filing system that I use the most, is cost effective and works the best when needing to go back and view past expenses and income, is the simple lever arch file and the use of dividers. Depending on the size of your business, it is easiest to have 1-2 lever arch files with dividers for monthly income and expenses and a separate lever arch file for taxation information, any correspondence received that relates to the business, bank statements, credit card statements and loan statements - anything that applies to the running of your business. When it comes to tax time, your accountant will thank you for it and, as it will reduce the amount of time required to sort your paperwork out, will save money!
The filing system that I use the most, is cost effective and works the best when needing to go back and view past expenses and income, is the simple lever arch file and the use of dividers. Depending on the size of your business, it is easiest to have 1-2 lever arch files with dividers for monthly income and expenses and a separate lever arch file for taxation information, any correspondence received that relates to the business, bank statements, credit card statements and loan statements - anything that applies to the running of your business. When it comes to tax time, your accountant will thank you for it and, as it will reduce the amount of time required to sort your paperwork out, will save money!
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