What do Bookkeeping
Records consist of?
It is a requirement of law that you
keep adequate business records from which the
IRS can confirm whether the tax you are paying is the
correct figure based on the correct profit you have stated in your
business tax return. Good records mean the accounts at the end of
the year will be correct and the profits arrived at accurate.
Poor records means your accountant will have to spend more
time arriving at your final figures. This converts to higher fees.
Many business owners nowadays choose to use a computerised
accounting package. That can be a huge advantage because it cuts
away the time spent on laborious, repetitive tasks. It also does
away with spending long hours working hand completing manual
records such as cashbooks etc.
The accounting records you will need to keep will
record:
- All your money going in and going out. This is known as the
cash book.
- All your sales including when they have been paid for. This is
the sales ledger.
- All your purchas
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