Running a successful business entails keeping accurate and timely financial information.  A clear financial picture allows you to monitor the success or failure of your business. A good record keeping system also provides you with the information you need to evaluate the financial consequences of your financial decisions.
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As a small business owner, you probably rely on an outside accountant to do your taxes and prepare financial statements.  However, it is best that you or someone in your organization take on the responsibility of keeping an accurate set of financial records.  Doing the routing bookkeeping chores yourself, however unpleasant it may seem, will minimize your costs of paying an accountant and allow you more control of your financial information and operations. 

For starters, make sure that you file paid bills, canceled checks and other business documents in an orderly fashion and keep them in a safe place. You may use manila folders, filing boxes, or an accordion file divided into “car,” “utilities,” “entertainment” and so on. At a minimum, put receipts in the proper categories throughout the year so it would be easier to total them up at tax time.  Staple the adding machine tape to each folder or stack of receipts.  You are not required to keep records in a formal “set of books;” however, you need to find the best record keeping system that works for you. 

Take record keeping seriously. A perfectly adequate record keeping system for a small business might include some or all of the following: