When you start your business with your passion and vision, do you have any plan on your accounting records management? It will be wise to consider it when the business is started.

Tips:

Keep all sales invoices, payment receipts, bills in an order. The records might be sorted by dates, all organized by month. Or the records can be organized by categories including names of customers, vendors, government filings, company legal books etc.

Use an accounting software will be helpful to track the records. Nowadays, online banking can be linked with accounting software. Bank and credit card transactions can be updated timely. Reconciliations can be performed periodically to check if there are missing bank transactions recorded.

In the meantime, there might be shareholder's out-of-pocket payments for business expenses. A reimbursement form will be helpful to list the payments by the shareholder to withdraw the equivalent amount from the company. If the amount is not reimbursed yet at the year end, the expenses should be recorded in the company's books. The unpaid balance by the company will be the short-term shareholder loan.

There are other things that the shareholder who is actively involved in the business should be aware of. For example, how to track the GAS expenses for business? Are all meals and entertainment deductible for business purposes? What if the shareholder works at home for business? When the shareholder needs to get a new phone and how it record it appropriately for the company?

You are more than welcome to contact us if you would like to ask.