How to Organize Your Bookkeeping Records

Paperwork…if we don’t have an efficient system for organizing paperwork, it will overcome us!  Although bookkeeping may not be your favorite task, it is a necessary aspect of business.  Take control of the never-ending paperwork by using a system that keeps you organized and tax ready.

When starting a bookkeeping system, use categories for totaling and filing your paperwork.  Look at your tax return and use the categories from the schedule C as file and bookkeeping titles.  It’s the perfect place to start!

For example, you may want to have files and bookkeeping titles for the following categories:

Income

  • Merchant card and third party payments
  • Gross receipts or sales

 Expenses

  • Advertising
  • Car and truck expenses
  • Commissions and fees.
  • Contract labor
  • Employee benefit programs
  • Insurance (other than health)
  • Interest:
  • Mortgage (paid to banks, etc.)
  • Legal and professional services
  • Office expense
  • Other expenses
  • Pension and Profit-Sharing Plans
  • Rent or lease (vehicles, machinery, and equipment, other business property)
  • Repairs and maintenance
  • Supplies
  • Taxes and licenses
  • Travel, meals, and entertainment
  • Utilities

This category system allows you to easily enter and retrieve information.  You’ll find information quickly by using the same titles on your bookkeeping records as you do on your filing system.