One area of bookkeeping that is very trivial, yet, at the same time, is also very important is the accuracy of tracking income and expenses. This involves a lot of tedious, sometimes time consuming effort on the part of the business owner. Keeping track of all those little receipts can be a hassle. If you want to keep an accurate measure of the profitability of the business, then it is necessary to keep up with all of this. I would highly recommend using an application like shoeboxed to help keep up with receipts.
One way to keep track of everything is to make sure you have a good chart of accounts. These are easy to create in your bookkeeping application programs. Once your chart of accounts is created, then you can export it to Excel, print it out or save it in a file where it will be easily accessible. If the bookkeeping application’s chart of accounts cannot be tailored to meet your company’s needs, then it is easy to create you own in Excel and import it in. The image I imported is very blurry, but it is a chart of accounts that I exported from Quickbooks into Excel. This process is very simple and easy to do.
Once you have everything categorized properly, then it is time to start thinking about tax reimbursements. There is a website that is amazing when it comes to knowing what is tax deductible and what isn’t, and what kind of documentation you need to keep around for IRS purposes. http://taxreceipts.com/tax-guide/ Please check this out. There is a ton of helpful information here.
A good bookkeeper will be beneficial in keeping records categorized correctly, keeping everything organized in an easy to find place, and saving you time and money.
Bambi Samares Epoch Bookkeeping