Bookeeping Commandments

Over the years, we have seen many bad habits that cause problems for business owners. Below is a list of rules to help you avoid unnecessary complications. Let's review the list together and design your processes to stay in good shape.

• Use dedicated bank accounts for each business and don’t mix with personal accounts
• Always reconcile your bank accounts
• Put good controls and oversight in place when employees have access to business assets
• Keep details of deposits made that are non-sales deposits (loans, equity) so they cannot be classified as revenue
• Keep receipts/bills for all disbursements made that prove valid business expenses
• Keep miles logs for business use of personal vehicles or personal use of business vehicles
• Keep meal and entertainment log of dates, amounts, attendees, and business purpose
• Always pay employees through the proper payroll process
• Always make payroll and other tax payment timely
• Always file tax returns timely
• Don’t ignore IRS or other government letters (they will beat you down)
• Collect W-9 forms from contract service vendors and file 1099-MISC at year end