4 bookkeeping tips you should know
Each bookkeeper deals with similar difficulties when trying to validate accounting transactions during the month-end process. By far one of the largest issues bookkeepers may face is lack of supporting documentation? Supporting documentation add creditability and validation for every accounting transaction and bookkeeping tasks. Whether it is a paper file or electronic copy every business should maintain documentation for any accounting transaction that flows through their business. The following are excellent examples of supporting documentation that most small businesses will likely encounter:
- Keep every receipt possible regardless if it’s a credit card transaction or a receipt of goods.
- Use technology it is your friend. Scan every receipt into an electronic folder. Some cooperate credit card accounts even let you scan receipts directly to your online account.
- Record the receipt transaction sooner rather than later. It will make life easier in the long run.
- They can help confirm that you have received a complete purchase.
- Packing slips can also assist in validating purchase amounts.
- When you are purchasing similar items from multiple vendors trying to determine what came from which vendor without packing slips can be a nightmare.
- Scan all statements to an electronic folder and save to a centralized accounting folder.
- Without bank statements or account activity reports bank accounts cannot be reconciled properly.
- Use the statements to confirm that accuracy of your accounting transaction entries.
- Accurate and complete deposit slips assist the bookkeeper in applying customer payments to accounts receivable invoices.
- Help determine where and why you received funds.
- Deposit slips can also help confirm that your financial institution recorded the correct amounts. Yes, banks do make mistakes too.
I hope you liked these nuggets on bookkeeping advice. To get more helpful advice visit our blog where we discuss this and more on Tulsa bookkeeping. What do you find is helpfuld during month-end? Let us know by dropping a comment below! LUXA Enterprises is an outsource accounting group offering accounting solutions to small and mid-size businesses in the Tulsa and surrounding areas.