2013 Accounting Tip #10

There are many ways to get organized for taxes. Each person needs to find the way that works for them to ensure that they will stay consistent and current. We will provide you some tips at getting started, you may even find a tip that you like better than your current way of doing things.

Deposit your receipts timely.  Depending on your volume, this should be done either daily, every other day or at minimum once a week.  It is best that you deposit your receipts each day in order to reduce the risk of money being lost or stolen, and checks not clearing by the time they are deposited.  If your business does not have a lot of cash receipts, you should at least deposit your receipts every week. All checks, money orders and cash items received should be deposited intact without any deductions for expenses or advances. Use your petty cash fund to pay expenses or advances that require currency.  Better yet, write a check to reimburse the person for the expense so that you have tracking on that expense and it is accounted for.  It is not recommended that you keep large quantities of cash at your place of business.  Have a specific cash amount that you keep on hand in a petty cash fund for those instances when you need to make change.


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