« Tips For Effective Business Meetings | Main | Time Managememt For Entrepreneurs »

How and Why To Keep Business Records

When you decided to start your business, was your first priority concerned with setting up your filing system for recording your expenses? I seriously doubt it. This simple task (yes it is simple) is usually the item that is the last thing on the new business owner’s mind. The more “important” issues of what product to sell, how am I going to advertise, how much money is it going to cost me, and how much money can I make are the first questions we consider when going into business.

The task of recordkeeping is usually procrastinated until the very last minute, when it is required. It is time to file your tax return, or time to go to the bank to get a loan for the business and the banker wants to see some financial records for the business. This can be a very daunting and cumbersome task if you have to dig through receipts and expenses for the whole year! No wonder we hate keeping records. That’s no fun!

Well, guess what? If you aren’t keeping good, timely, and up-to-date records monthly, you don’t need to be in business. That’s right. I said it. Here are the top five reasons why I truly believe this statement.

1. Lost tax deductions = Lost Money If you are throwing your receipts in a shoebox each month and not keeping an organized record of your income and expenses, I can bet you money that you are losing out on some major tax deductions. A smart businessperson keeps track of her income (cash in) and expenses (cash out) monthly, sometimes even weekly. You do not need a fancy accounting software package to do this. You don’t even need a computer! Simply keep a journal monthly and log in all of your receipts and invoices, and there you have it.

2. High CPA/Tax Preparer Fees = Lost Money I can speak from personal experience, that if you bring in that shoebox of receipts for the year and expect your tax preparer to record and properly deduct your business expenses on your tax return, you are sadly mistaken. Tax season is the busiest time of year for these professionals. If you expect them to do your bookkeeping and recordkeeping as well, expect to pay for it. They don’t have the time, or the desire to make sure that every receipt is accounted for. As a businessperson, it is your responsibility to make sure they are given the right totals and you can trace it right back to your tax return.

3. Too much time spent looking for receipts The time you spend looking for a past receipt for a particular purchase for whatever reason, you can be utilizing this time in advertising your business or producing your product. These are important money generating activities that you are sacrificing due to your lack of recordkeeping.

4. No financial statements Every business owner should review at least the profit and loss statement (income statement) for their business MONTHLY. This important piece of paper tells you if you are making money or losing money. How can you possibly run your business and make a profit if you are not analyzing your sales and expenses continuously? A good recordkeeping system will allow you to have this information at your fingertips.

5. No need for expensive accounting software If you are just starting your business, or are a small business owner, you more than likely do not need software to prepare your books. A simple journal that is kept monthly of your income and expenses is all you need. At a glance, you will know how your business performed for that particular month.

As a business owner, you need to realize the importance of a good recordkeeping system. This should also be a task that the business owner performs for at least three to six months before delegating the job to someone else. You will be able to run your business more effectively, determine possible cycles in the business year, and know where your money is going. Your business will be much more successful if you keep a simple recordkeeping system.





Leon Edward is the blog owner and webmaster of  http://www.HomeBusinessIT.com where you'll find internet business ideas and home business management info , legitimate online business reviewed , home business management and marketing information where you can even get step by step  affiliate marketing training to start your own affiliate marketing online business

Attract Money, Success, Love, Anything You Desire !

Get Your FREE Mind Movies and Create Your Ideal Future. Visit my special offer link at

New people are succeeding in opening their own online niche store  or supplying what sells well on eBay . Get A Free Trial for Wholesale Products To Sell at  Products To Sell On eBay . Start with eBay Basics

Learn hottest technique for internet marketing at Video Marketing

Learn the vital aspects about legitimate home businesses in a FREE comprehensive special report  and Internet Business elibrary, visit http://www.homebusinessit.com/newsletterI've joined top earners on the internet with  Internet Home Business 

Learn to  Day Trade , Beginners Day Trading   , Learn Affiliate Marketing , Home Business Management  Sigma Certification  Six Sigma Black Belt Certification

More Energy than money?

Learn How to Turn 5 hours a week into
$500 per month, just visit http://www.StartAHomeBusinessFree.com 

Every year, the government--local, state, and federal--gives away millions of dollars to people just like you for new business ideas. Leon Edward shares information on government funding, Federal, State ,Local Grants , Home Business Management, Setting up a home business ideas, affiliate marketing software and business plan, Grant Money To Start A Business , where to find start up business grants, sources, how best to fill out applications, grant management step by stoep tips, setting up a business steps at his website http://www.business-idea-grants.com

Selling Online? Find Wholesale Products To Sell at products to sell on eBay 

Vacation More, Travel more with family and friends. Learn to budget vacations and save while still getting great vacations. visit Cheap Condo Rentals .After you make tons of money, you may want to visit my  cosmetic surgery website , maybe a tummy tuck  .  Visit Leons Increase IQ improve brain website , increase concentration, be smarter. entrainment cds

Being Rich and Successful is great but you must remain healthy and happy. Maintain your health  as you age , visit my anti aging health website with anti aging foods, age specific anti aging exercise, resveratrol health info, resv anti aging or purchase resveratrol and  affordable  anti aging HGH .

Finding A Job In A Recession can be tough ,  learn or update your computer and business skills at office online training with MS Office Training
but here is what is easy...

Use you subconscious mind  and infinite mind to ... Try Brain Software


 Improve your self confidence and looks with cosmetic surgery 





Hosting by Yahoo!