10 WAYS TO ORGANIZE YOUR BOOKS

November 11, 2008 · Filed Under Bookkeeper, Bookkeeping, Bookkeeping Process, Bookkeeping Theory, Business Finances 

I’ve decided to help make your life easier. You might ask how? Let me tell you. Having managed the books for several small businesses, I’ve come across some interesting situations in which clients presented their data to me. Everyone has their own technique, but I noticed the biggest challenge across the board was consistency. So I ask you, what are the best methods for organizing your data? Below, I’ve hi-lighted 10 of the most popular methods to present complete and organized documents for bookkeeping.

  1. Create an operations manual which clearly states your method of file maintenance. Make sure that all key personnel have a copy.
  2. Keep a receipt for everything. Every transaction should have a corresponding document. That includes all transactions no matter what the originating source is (i.e. purchase orders, credit card receipts, bank deposit slips, etc.)
  3. Make sure that all documentation is properly labeled. All customer and vendor files should have complete contact information. The dollar amount of the transaction should be clearly stated on documents.
  4. Use a tickler file. You know the kind that has the sections either separated by date or letter of the alphabet. This helps to control the flow of papers daily.
  5. File, file, file. Don’t forget to properly file away all your documents. How often you do this, depends on the amount of activity you produce. Get into the habit of doing this at least weekly.
  6. File retention. Every industry has standards for what files to maintain and for how long. Check with your industry’s reporting requirements.
  7. Have a checks and balances system in place. Important transactions like writing checks or depositing funds should always be reviewed by a senior person of the company before completing.
  8. Important items like checks, deposit slips, signature stamps, should always be kept under lock and key. No more than 2 people should have complete access to these items.
  9. Color code your filing system. I’ve found this one to be really effective. It makes it easier to find items based on categories. For instance customer files could be green (for money), vendor files could be red (for payments). You get the picture.
  10. Use integrative software along with your major software for bookkeeping. For instance, there are plenty of file management packages for handling customers, employees, and the like. These packages help with setting up categories, creating profiles, and are generally compatible with spreadsheet and word processing programs like MS Office.

There we have it. Keep focused and stay organized.

Partnering for your success!
Jacqueline E. Ford
Financial Strategist

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