Petty Cash, Wages and Employers

Time Management Tips
Here are some tips to make bookkeeping easier and save you time and money.Make bookkeeping part of your regular routine. When you’ve established a routine you’ll find you work through your books quicker.

Try to update your records regularly, at least once a week. Don’t leave things until the last minute. The longer you put it off, the harder it becomes to put your records into order.  Before starting, make sure you have all the information and documents you need.  Avoid interruptions when doing your bookkeeping. You should set aside a time and place just for bookkeeping.
Try to complete each bookkeeping task in one sitting. For example, when filling in your tax forms make sure you finish them before doing something else. Keep your books in an organised manner.  You’ll work quicker if you can find the information you need easily. Always try to find better ways to keep your books and records.

The 3 Main Reasons why Records Affect the Business 
A business that fails to keep accurate and complete records places its long term success and its very survival in grave doubt.  There are 3 main reasons why records must be good (complete and accurate) records so as to be of value to the success of the business. 
  1. Business Position
    Good records will provide the information that you need to be able to operate your business more efficiently and profitably.  Good records enable your advisers to identify what you own, and what you owe and the income and expenses of your business.
  2. Regulations
    Good records are needed for the preparation of accurate information required by government departments such as the IRS.  You need good records to ensure you pay the correct amount of Sales Tax and other taxes. They must be clear enough for the IRS inspectors
    to carry out a “no problems” audit if required.

  3. Final Accounts
    Good records are necessary to enable your accountant to complete accurate Financial Accounts such as Revenue Statements (or Profit and Loss Accounts) and Balance Sheets as well as Cash Flows Statements. Accurate Financial Accounts present a clear picture of your business operation and provides you with the correct data for making business decisions in your business.

The Contribution by Clear and Accurate Records is Substantial
You will need to keep accurate records because they contribute to the success of your venture.
Good records contribute in the following ways.
  • Enable your cash to be controlled
  • Enable full financial accounts to be prepared
  • Enables your business to monitor its finances from day to day
  • Keeps close track of all operations of your business
  • They enable your actual performance to be measured against your plan
  • Should highlight problems and other opportunities that arise along the way
  • Enables you to have quick access to information that is important for business decisions.
  • Good records will save you a lot of time and effort
  • Good records will, in some cases be the saviour of your business where legal action has been against it. undertaken (good records can be especially critical when it comes to legal fights or court actions)
  • Enables your obligations to the IRS as well as any other regulations to be met