Tax and bookkeeping Irvine CA is an essential part of running a business. Bookkeeping is the process of recording business transactions. You will need to record the money going out and the money coming in. You should get organized because documentation is key. Hold onto bills, receipts, cancelled checks and more.
Setting up your accounts payable
Make sure you save proof of your business expenses. Set up a ledger or spreadsheet. You will need to create a ledger on a piece of paper or an electronic spreadsheet. If you don’t want to do this, you can buy bookkeeping software to make your bookkeeping easy. Create columns for important information and post information daily. Make sure you pay your bills in a timely manner.
Setting up accounts receivable
Create an invoice template to ensure that your invoice is clear so that your clients pay as quickly as possible. You can outsource bookkeeping services Orange County in California to create clear invoices for you. Save proof of your payments and other important documents. Create a ledger or a spreadsheet. Insert columns for accounts receivable information such as the name of the customer, invoice date, the amount owed, invoice number, due date, date payment was received and amount past due.
Post information to the ledgers regularly and do follow-ups on late payments. You will need to send letters to clients telling them that their bill is due.
Documenting petty cash
Documentation of petty cash is part of the tax and booking Irvine CA. establish the starting balance to avoid losing track of where your petty has gone. Keep records of what petty cash is spent on. Create a log with your receipts and try to replenish by writing yourself a check. Make sure you enter petty cash information accurately. Petty cash should be considered as an asset to your financial statements.
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