Archive for the ‘Accounting Tips & Tricks’ Category
Year End Check List
January 21st, 2010
It's that time again
Did the last quarter of the year go by before you knew it? That is when you should have been reviewing your records in preparation for the year-end. Once Halloween hits it seems like Thanksgiving is on us before we can catch a breath. Employees want to take time off for family functions, vacations, shopping, etc. Productivity is not at its peak. Before you can blink, it’s Christmas and the END OF THE YEAR!
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Record Retention Guide: What You Need to Keep
September 16th, 2009
| Item | Retention Period | Item | Retention Period |
|---|---|---|---|
| Accident reports/claims (settled cases) | 7 years | Journals | Permanently |
| Accounts payable ledgers and schedules | 7 years | Minute books of directors, stockholders, bylaws, and charter | Permanently |
| Accounts receivable ledgers and schedules | 7 years | Notes receivable ledges and schedules | 7 years |
| Audit reports | Permanently | Option records-expired | 7 years |
| Backup of computer data | 1 year | Patents and related papers | Permanently |
| Bank reconciliations | 3 years | Payroll records and summaries | 7 years |
| Bank statements | 3 years | Personnel files-former employees | 7 years |
| Capital stock and bonds records; ledgers, transfer registers, stubs showing issues, records of interest coupons, options, etc. | Permanently | Petty cash vouchers | 3 years |
| Cash books | Permanently | Physical inventory tags | 3 years |
| Charts of accounts | Permanently | Plant cost ledgers | 7 years |
| Checks-cancelled (see exception below) | 7 years | Property appraisals by outside appraisers | Permanently |
| Checks-cancelled (for important payments, i.e. taxes, purchases of property, special contracts, etc. Checks should be filed with the papers pertaining to the underlying transaction.) | Permanently | Property records, including costs, depreciation reserves, year-end trial balances, depreciation schedules. Blueprints, and plans | Permanently |
| Contracts, mortgages, notes, and leases-expired | 7 years | Purchase orders-except purchasing department copy | 1 year |
| Contracts, mortgages, notes, and leases still in effect | While in effect | Purchase orders-purchasing department copy | 7 years |
| Correspondence-general | 2 years | Receiving sheets | 1 year |
| Correspondence-legal and important matters only | Permanently | Retirement and pension records | Permanently |
| Correspondence-routine (customers and vendors) | 2 years | Requisitions | 1 year |
| Deeds, mortgages, and bills of sale | Permanently | Sales commission reports | 3 years |
| Depreciation schedules | Permanently | Sales records | 7 years |
| Duplicate deposit slips | 2 years | Scrap and salvage records (inventories, sales, etc.) | 7 years |
| Employee manuals | Permanently | Stock and bond certificates-cancelled | 7 years |
| Employment applications | 3 years | Stockroom withdrawal forms | 1 year |
| Expense analyses/expense distribution schedules | 7 years | Subsidiary ledgers | 7 years |
| Financial statements-year-end | Permanently | Tax returns and worksheets, revenue agents’ reports, and other documents relating to determination of income tax liability | Permanently |
| Garnishments | 7 years | Time cards/records | 7 years |
| General/private ledgers, year-end trial balance | Permanently | Trademark registrations and copyrights | Permanently |
| Insurance policies-expired | 3 years | Training manuals | Permanently |
| Insurance records, current accident reports, claims, policies, etc. | Permanently | Union agreements | Permanently |
| Internal audit reports (longer retention periods may be desirable) | 3 years | Voucher register and schedules | 7 years |
| Internal reports-miscellaneous | 3 years | Vouchers for payments to vendors, employees, etc. (includes allowances and reimbursement of employees, officers, etc. for travel and entertainment expenses) | 7 years |
| Inventories of products, materials, and supplies | 7 years | Withholding tax statements | 7 years |
Deadlines – It’s Due When?
September 16th, 2009
One of several important dealines for your small business
It’s important to not miss those deadlines. Here’s a list of Federal and Texas deadlines that may be important to you.
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Be a Good Citizen
September 16th, 2009
Be involved. Join your local Chamber of Commerce, join a service club in your community, and do charitable giving. As a business owner you will get hundreds and even thousands of requests for help. Individuals and businesses have an obligation to be good citizens. Give according to your ability and your conscience. Budget for it and stick to that budget.
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Why do I need an Employee Handbook?
August 19th, 2009
There are many good reasons to have an employee handbook.
It is a lot of work to put one together, right? Not as much as you think and having one can be a life saver for your business. Having a written policy can be the determining factor in an employment dispute from an unemployment claim to a lawsuit.
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Posted in Accounting Tips & Tricks | 
Tags: alcohol testing, attendance policy, computer usage policy, confidentiality policy, distribution policy, drug free workplace, employee termination, employment dispute, equal opportunity statement, free workplace policy, harassment policy, holiday policy, information confidentiality, information conflict, paycheck distribution, texas workforce commission, unemployment claim
Security: Making Deposits and using ATMs at Night
August 19th, 2009
Robberies are an all too common occurrence. These tips are provided to help you protect yourself when using ATM’s and night deposit boxes.
For drive-up ATMs and night depositories:
- Check your surroundings; do not attempt a transaction if you see anyone loitering near the ATM or night depository.
- Drive close enough to the ATM or night depository so that you can reach through the car window and do not leave your car.
- Keep your doors locked, your car running, and your windows not in use closed.
- Have your bankcard or deposit ready.
For walk-up ATMs and night depositories:
- Park near the ATM or night depository.
- Check your surroundings; do not attempt a transaction if you see anyone loitering near the ATM or night depository.
- Have your bankcard ready before getting out of your car.
- When you are making a deposit, fill out the envelope before getting out of your car.
- Always turn off and lock your car while you are at the ATM or night depository.
- When entering your identification code, shield the keyboard from anyone who may be in line behind you or observing from a distance.
- If you are in the middle of a transaction and become uncomfortable, press cancel, take your card and leave.
- Before leaving the ATM, make sure you have your card, receipt and cash.
- Do not count currency in view of others; pocket your cash and ATM card before leaving the ATM.
- Have your keys ready before you get to your car.
And, of course, report lost or stolen ATM cards or suspected misuse of a card to your bank immediately.
*U.S. Department of Justice, Office of Justice Programs, Bureau of Justice Statistics: While working or on duty, U.S. residents experienced 1.7 million violent victimizations annually from 1993 to 1999 including 1.3 million simple assaults, 325,000 aggravated assaults, 36,500 rapes and sexual assaults, 70,000 robberies, and 900 homicides. 19% of robbery victims report being at work, or traveling to or from work when the crime occurred.
Posted in Accounting Tips & Tricks |
Tags: atm cards, bureau of justice statistics, department of justice, deposit boxes, night depository, robberies, tips
Six Early Signs of Customer Payment Problems and What to Do
August 17th, 2009
Manage your receivables, manage your cashflow
Here are some useful tips to help manage your company’s losses in the recession. Although the downturn has changed normal payment patterns, when you see any of these signs, you should act before it is too late.
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Methods of Sales: Weights & Measures
August 10th, 2009
Weights & Measures
You have a great idea for a retail business. You do a business plan, secure financing, find a location, buy inventory, hire employees, and open the doors. By what method do you sell your commodity? How must it be labeled? It’s easy to run afoul of regulations you didn’t know existed and didn’t know applied. A piece of ready to eat candy, a donut, a beverage, a piece of meat, clothing, a length of silver chain, all these commodities have regulations for packaging, labeling and methods of sale. Is it sold by weight (gram, pound, ton), measure (foot, square yard, meter), or unit (piece, pair, dozen), etc? This defines the method of sale.
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Keeping Good Books. Why Bother?
July 26th, 2009
Maintaining good books is essential to a strong business.
Bookkeeping. Let’s face it, bookkeeping is not glamorous and the people and departments that handle the bookkeeping are, more often than not, seen only as a cost center. Small businesses often neglect their books because of the time and the effort required to setup and maintain a good bookkeeping system. Business owners would rather be out generating sales and increasing revenue than making journal entries and entering debits and credits in their general ledgers.
Here’s the rub, though. Small businesses can’t afford to ignore bookkeeping. This article will help you understand why by providing some enlightenment as to what bookkeeping is and how it affects your business.
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Posted in Accounting Tips & Tricks |
Tags: accounting, bookkeeping, deductions, income, IRS, small business
Ten Most Common Bookkeeping Mistakes by Small Businesses
July 24th, 2009
Stay on top your bookkeeping and you'll stay on top your busineess.
It may not one of the more glamorous jobs, but bookkeeping is part and parcel of a company’s success. Mistakes and inefficiencies can cost a company both time and money.
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Posted in Accounting Tips & Tricks |
Tags: bookkeeping, common mistakes, deductions, IRS, sales tax, small business
