Organize your Income documents.
In a filing cabinet, make separate folders for different kinds of Income documents:
- Work In Progress folders by Client (like Estimates, unfilled Purchase Orders, Sales Orders, etc)
- Invoices Waiting on Payment
- Paid Invoices by Client (sort into folders in alphabetical order)
- Investment Income records
- Passive Income records (like Rental Income, keep separate)
Organize your receipts, bills, etc. on a daily basis, preferably by vendor and expense type. It will save you time at the end of the year when you file your taxes.
Make folders for your documents:
Home office expenses
Medical and healthcare
Mortgage record (permanent asset file)
Vehicle record (permanent asset file)
The best way to know that all transactions and account balances are correct is to reconcile ALL accounts when you receive the statements. This will help you catch any mistakes and keep you from over/understating your income and expenses.
Separate your business account and personal account
Pay yourself regularly. Either with Owner’s Draw, Shareholder’s Distribution or a Paycheck.
Spend the money in your personal account ONLY for personal use.
Spend the money in your business account ONLY for business use.
If you invest money in the business, transfer money from personal account to business account.
It helps you keep track of how your business is doing as well as prepare for your tax returns and the end of the year.
We are so excited to be settled in at our new location. Please update your contact information as our address and number has changed.
Efficiency Counts Inc
1401 N Elm Ave
October 22-27, 2016, I journeyed once again to San Jose, CA for the annual QuickBooks Connect Conference.
It’s always a pleasure to join my friends and colleagues and 5000+ other QuickBooks experts to learn more and serve you better!
Before you file your tax return, remember to:
RECONCILE, RECONCILE, RECONCILE
The Bank Statements
The Credit Card Statements
The Loan Statements
The Accounts Receivable
The Accounts Payable
The Sales Tax
The Payroll Tax
The Undeposited Funds
Leave no “Widows and Orphans” on your Books.
Contact me if you need help.
~ because Efficiency Counts!