Keep proper records

Keeping accurate and up-to-date records is crucial to a successful business. Records are the most important management tool you possess and they come in handy at tax time too. An accountant can help set up a recordkeeping system or you can find books and forms to get you started. A good rule of thumb is to keep your records as simple as possible.

Before you start your business, be sure to open a business checking account. This will help keep your personal and business finances separate and will provide a record of deposits and expenses. Avoid using the business account for personal expenses.

Besides financial records, depending on your type of business, you may need to keep track of other information, including but not limited to:

• Inventory
• Client Contacts
• Petty Cash
• Suppliers
• Employee data
• Mileage
• Telephone Calls
• Accounts Payable
• Payroll

The ability to find and use information when you need it is invaluable. You can keep track of your information manually or use one or more of the many computer programs available for small businesses. Be sure to back up your work!

Other sites of interest

• IRS Recordkeeping
• Your Basic Bookkeeping
• Starting a Business and Keeping Records
• Recordkeeping and Managing Business Finances
• Running Your Biz: Legal & Biz Forms
• Shareware on the Internet
• Shareware from the SBA
  
  
  

This document was prepared by the San Joaquin Delta College Small Business Development Center. Send comments to: Gillian Murphy

Acknowledgements, disclaimers, etc.