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Receipt Reminder: Doing These Things May Kill Your Business

Posted by on 6/25/2014 to Manuals
We here at gorillapaper.com are here to help you provide receipts, invoice forms and any other small paper need you might have for your business. Why would we do this? Well, for two reasons - first, because we believe in our products and services and we want to share the with you; but second, because we all have to deal with the IRS - and it is usually not that forgiving when it comes to us making mistakes with our accounting.

So as a public service to our small-business friends, we'd like to present a couple of the most common mistakes that small business make, and we like to help you keep these in mind so you don't make the same mistakes and face the wrath of the IRS or worse - have to shut your doors. There are other errors, but these, we feel, are vital because they involve receipts and invoices - things you can directly control.
  1. Letting your receivables fall behind. We all can fall victim to it - we sent out an invoice, and we swear that when the money comes in we'll reconcile things - but them we get busy and suddenly, receivables have been piling up for a couple of months and you lose track of what's what. Try to get in the habit of handling invoices on a weekly or bi-monthly basis if you can, and encourage online payments and online receivables - that can often be reconciled automatically, which can save you tons of time.
  2. Not having expense receipts. Sometimes, a small business will take a business-expense receipt and set it aside for weeks, and then go back over it and forget what the expense was for - equipment, supplies, taking a client out to lunch, a hotel bill, etc. Don't throw anything away, and keep an envelope (or multiple) with you and file each receipt in the proper envelope, or make notes on the back of the receipt of the expense date, who you had lunch with, etc., so when you get around to filing for taxes, you can more accurately remember the expenses that may be claimed and those that can't.
  3. Not recording cash transactions. Debit and credit cards and checks are relatively easy to record, but the cash transactions are just as vital in bookkeeping and taxes. No matter whether you use cash to buy or you receive cash in a sale, you should always have some record of the transaction - including date, amount, and the product or service bought or sold.

If you make a conscious effort to avoid these common mistakes, your small business will already be in better shape than a majority of businesses out there. Happy entrepreneurship!
 
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