Greater Houston Business Services
We also specialize in small business consulting like these
COST SAVINGS TIPS.
A. If you paid bills with cash or checks or credit cards, you can cut your bookkeeping costs by:
On every invoice paid by check:
Put date of payment, check number, and amount paid if different from invoice amount on the invoice.
Keep these invoices separate from those invoices paid by cash.
On every invoice paid by cash, credit card, or debit card: put date paid and amount paid if
different from invoice amount on the invoice or cash ticket.
Separate the cash, credit card payments, and debit card payments into different piles.
The credit card and debit card payment will be recorded on your bank statement if paid out of your
business account. Since the cash payments won't be on your business bank statement, give these
cash tickets to your bookkeeper. (You could reimburse cash tickets amounts to yourself to avoid
having your bookkeeper enter the cash tickets into your accounting records.
Email firstname.lastname@example.org if have questions about this.
Note: Your bookkeeper will save much time and you much costs if the above procedures are
followed, otherwise every invoice has to be examined whether paid by cash, check, debit, or
credit card if you want to deduct your cash payments from your income.
B. Deposit all checks into the bank (rather than cashing them) unless you are a sole owner and
keep a record of your income. Otherwise extra work will be necessary to calculate your income.
C. Keep a record of all deposits that are not income or payments of accounts receivable.
Otherwise your bookkeeper will record all deposits as income and you will overpay your income taxes.
We have many other tips to help your business with our book, Bookkeeping Management
by Ed Wuensche. See www.bookkeepingmanagement.com