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Bookkeeping

Five habits that keep your books ready every month

Small routines that make each month's bookkeeping faster to complete and easier to review.

On this page
  1. 1. Keep business and personal spending apart
  2. 2. Save receipts as you go
  3. 3. Say what each deposit is for
  4. 4. Send statements as soon as they arrive
  5. 5. Answer questions before the month is closed

The short answer

Keep business and personal spending apart, save receipts as you go, say what each deposit is for, send statements as soon as they arrive, and answer questions before the month is closed.

1. Keep business and personal spending apart

Use one bank account and one credit card for the business only. Every personal charge on a business card has to be found, asked about and recorded separately, which slows the month down and makes the books harder to read.

2. Save receipts as you go

Photograph or forward a receipt the day you pay it. A receipt found weeks later is often faded, lost or impossible to match to the right charge.

3. Say what each deposit is for

A deposit can be a sale, a loan, a refund or money you put in yourself, and each is recorded differently. A short note on anything unusual saves a question later.

4. Send statements as soon as they arrive

Every bank and credit card account is reconciled to its statement each period. The month cannot be completed until the last statement is in.

5. Answer questions before the month is closed

A question answered within a day or two keeps the period on schedule. Left for later, the same question tends to come back at year-end, when it is harder to answer.

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