Financial records of any business should be stored in a tidy way. There may be times that you need to get some particular record later. At those times, you must have certain accurate mechanism to fetch it and present it. The following are some of the most important tips that will help you keep your financial records such as receipts and invoices tidy and nice.
Store all your files electronically
You can simply organize all your files into accounting software that works best for you. You can simply visit https://thesmartaccountants.co.uk to get the best solution for your business needs. Pick the one that best suits to your business needs and stick to it. After all, nobody likes to search for misfiled receipts or invoices.
Make notes on receipts
Making small notes on invoices and receipts can be a great idea for entertainment and dining expenses. For instance, it can be very easy to remember why particular fax machine was bought, but it can be very hard to remember who went for dinner at some hotel three years ago and what business purpose was.
Keep daily business journal
At first, keeping daily journal can sound like overkill with your hectic schedule. However, it can be easily done by keeping a proper calendar in your Google calendar or Outlook. There are many legal and other reasons to keep detailed schedule of the day even if you add those details at end of your working day.
It is always advisable to stay away from cash since using it for expenses can be absolute death-nail for the business’ clients that are trying to keep good documentation and bookkeeping records for an audit. Cash is generally easy to spend and very difficult to track.
Plus, it is mostly impossible to reconcile with the receipts. So, the best idea is to stick to credit and debit cards to track your expenses and then combine them easily with the receipts.
File receipts instantly and note what each receipt is for
If you want to improve your overall organization, make a habit of filing invoices and receipts immediately. It may seem to be tough and time consuming as well, but at the end of the day, it can really help your business run efficiently.
When it comes to management of receipts, most of the people make the mistake of just keeping them. This may work well when you have receipts for the tangible items that you purchased. However, when it comes to entertainment or meals make sure to note on each invoice or receipt who you met as well as why you met! All this information will greatly help you in an audit.
Take picture with your phone!
With today’s technology, taking picture of anything is one of the most useful things. There are even many Android and iPhone applications that can easily help you in tracking your business expenses.
The best idea for any business is to be always prepared with set of receipts and invoices for all expense. Stay one step ahead always!