Three Easy Time-Saving Tips for Handling Business Receipts
If you are like many small business owners you probably rarely have the time to do many small tasks on the spot. But even simple tasks like entering data and filing papers can become time consuming, monumental tasks if you are not careful.If you only have time to work on your books in your spare time (which you never seem to have), three easy steps can save you time and trouble when you do sit down to enter receipts.
Time Management Tips for Bookkeeping
- File Receipts As They Come In: Instead of tossing all your receipts into your in-box to be dealt with later (or worse, losing them because you do not have any specific place for receipts) file them in their proper "permanent" place as they come in.
Keep a filing cabinet near your desk or somewhere that is easily accessible so you can file receipts by month in folders. If you do not have a filing cabinet you can use an accordion style folder that allows you to store receipts by month.
Even if you do not have time to enter receipts into your books or computer as they come in filing them away by month puts them into batches that will be easier to input later and to find if you need one.
- Mark Receipts That Have Been Recorded: Whenever you actually record a receipt make a notation on the receipt before filing it. For example, stamp you could use a stamp that says “Entered” (which may be a different action from “Paid”) or put a star or check mark on the receipt.
If you mark receipts you will know at a glance if you have already entered it and reduce the risk of making duplicate entries or having to search your books to see if the amount was already recorded.
Using a check mark system allows you to keep recorded and unrecorded records in one file. If you need to search for a receipt instead of having to look in two places (recorded and unrecorded) you will only have to look in one folder.
- Never Wait Until the End of the Year to Start Your Bookkeeping: Time passes quickly and if you do not take steps to keep up on your books you will find yourself scrambling at the end of the year to locate and input receipts. Not only does this create a lot of stress for a business woman, it is also the best way to miss out on deductions and make costly accounting mistakes.
To get the most out of allowable business deductions you must have receipts. This is especially important if you [a href="http://womeninbusiness.about.com/od/taxinformation/a/homebustaxded.htm"]claim a deduction for using your home as a place of business.
Obviously, it would be ideal if we all had the time and resources to keep our books up-to-date on a weekly basis. But since many women serve the dual roles of being a business owner and wife or mother, it is easy to get sidetracked – and behind.
Make it a point to set aside at least one day each month to simply work on your books and update your financial records. While it is tempting to go longer (i.e., bookkeeping on a quarterly basis) you really need to know your income and expenses on a monthly basis to steer your business in the right direction.
If you know where all your receipts are you will be more likely to carve out the time you need later on the do your data entry. A task that seems daunting is more likely to get put on hold making it even more challenging to accomplish when you finally do get around to it.
