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