bills receipts bank statements credit card statements proof of payment any other documentary evidence
Think about moving to an automated system when you’re receiving more than two bills a day or your expenses are increasing rapidly.
supplier’s name account number type of expense (e. g. , office supplies, professional services, etc. ) date you received the invoice amount you owe
If you have few expenses, then you might want to post only weekly or monthly, but it’s key that you remember to develop a routine.
Paying bills early is a good way to maintain effective relations with your vendors. However, if you’ve been hired by a business to work as a bookkeeper, then paying on time is a necessity for maintaining your job.
your business contact information your business logo (if applicable) clear payment terms, such as “payment is due in 30 days of invoice date” detail about the specifics of your service hours worked the name a check should be made out to (particularly important if you operate under a fictitious business name)
invoices cancelled checks other proof of payment
If you are receiving 5-10 invoices a week, you should consider automating the system. [5] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source
customer name invoice date invoice number amount owed due date amount past due date payment was received
If you’re receiving multiple invoices a day, then posting daily is a good idea. [7] X Research source However, if you have only a few big invoices a month, then you might want to post monthly or weekly. Nevertheless, if you’re posting accounts payable daily, you should get in the habit of reviewing accounts receivable at the same time.
If you find clients aren’t paying the business, you might want to talk with the owner about giving customers more options for making payment. For example, the business could accept credit cards.
Most small businesses can get by with $50-200 in petty cash.
For example, if you took $20 out to buy new pens for the office, you should enter the information as soon as you remove the money from the petty cash box. If you have money left over, then record that you are returning money to the petty cash box.
Keeping this ledger will allow you to monitor the current state of your business. You won’t have to wait for the monthly bank statement to see if your business is insolvent or thriving.
Reconciliation is a good way to catch mistakes—yours or the bank’s. If the bank makes a mistake, you can contact them. Share whatever documentation you have (receipts, cancelled checks). You can also catch fraudulent activity with reconciliation. For example, an employee might have withdrawn money from the checking account without telling you. Perform reconciliation monthly. [13] X Research source If you wait too long, it will be harder to reconcile. Also, you won’t catch fraudulent transactions in a timely manner.
