Life Of E's

Running a small business, which includes a household (and keeping up with the administrative portion) can get unwieldy in a hurry. If you are starting out and looking for ways to file and organize your business receipts, here are some suggestions:

First, be careful not to make this more difficult than it needs to be. I use a fairly simple system that works great for me and may work for you, as well.

·      At the beginning of each year, I create 12 files, labeled (with a label maker or something other than my handwriting, which isn’t too legible) January – December. I put those in my accounting drawer (which is right next to my computer). I want it to be easily-accessible when I am using the folders or when my bookkeeper is here taking care of my accounting.  

·      Daily or whenever I have receipts that come in (when I make purchases at stores, when boxes are delivered from UPS with receipts inside, or when electronic receipts arrive, I put them all into my “To Be Processed” accounting folder. If it’s something I charged on one of my credit cards, then I put it in that folder. Within that folder, I have individually-labeled folders for my two main credit cards, along with a petty cash folder, etc. ‘To Be Processed” simply means that it needs to be put into my QuickBooks.  

·      Then, weekly, either my bookkeeper or I will process all of my receipts and input the information into QuickBooksPro. As soon as the information is put into QuickBooks, I move these receipts and other documentation into the current month’s receipts folder (Note: Once the final statement for the credit card comes in, I staple the corresponding receipts to that statement so it’s all together in the month’s receipt folder.  

·      Then, after the month has passed, I move the folder into one of my file cabinets that is across the room from my desk so I have access to it, but it’s not in my “prime real estate.”  

·      At the end of the year, I move all of the year’s monthly folders to my garage file cabinet (where it’s archived in case I need it) and then I start the process over with a new set of folders.

It’s not fancy, but it’s worked for my business for over 10 years (long before I even used QuickBooks. As much as I would hate to be audited, I would be ready with all my receipts, as needed.

Note:  To access a fabulous teleseminar taught by QuickBooks Pro Advisor Marie Gibson, just go to the ShoeBox101 page where you can register and receive the recording, handouts, and booklet.  Marie recommends a different format than the one I use (and one that has helped me immensely in just plain understanding accounting)…and so many folks who have taken the class have implemented her ideas to get themselves squared away for 2009.  You want to have your ‘books’ in order!

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Tags: accounting, bookkeeper, credit cards, Marie Gibson, QuickBooksPro, receipts