Keep daily financial records
Good record keeping is an important part of monitoring business performance. It also makes it easier for small business owners to meet their taxation obligations. Appropriate and up-to-date financial records provide the necessary information for managing the business efficiently and making sound business decisions.
To help you maintain your daily financial records, you should consider:
- Setting up either a manual or electronic record keeping system that suits your needs,
- Recording your business transactions accurately and promptly,
- Preparing a summary account (including income and expenditure) at the end of each month.
Maintaining good financial records starts with a good system and well-organised business records. The system can be a simple one and does not need to be complicated.
The following are some tips to help you keep good records;
- Keep your personal affairs separate from your business affairs,
- Acquire a filing cabinet, hanging folders and some manila folders to help keep your financial papers organised,
- Divide and sort your financial records chronologically
- All incoming documents (such as receipts and invoices) should be kept and filed under the proper headings. Never throw anything out, it might become important in the future.