| Things can get quite hectic for the small or home | | | | home maintenance or improvements since the home is |
| based business owner. Unlike bigger businesses where | | | | now your office. Therefore, inculcate a habit of |
| you can outsource and delegate a lot of job functions, | | | | keeping the receipts from all your purchases, whether |
| small business owners must take on a lot of | | | | is larger expenses such as buying a computer or it is |
| responsibilities themselves. You are the chief | | | | seemingly miniscule ones like the purchase of paper |
| executive, the human resources manager, the sales | | | | clips. Do not leave out expenses that you incur in order |
| manager and the procurement manager all rolled into | | | | to run the business on a day to day such as internet |
| one. It is important to keep a good grip on the ship to | | | | service provider fees, professional fees paid out to a |
| prevent things from going out of hand. One such | | | | consultant and electricity bills as this will determine how |
| element that you must keep good tabs on is | | | | much tax you are liable for. |
| bookkeeping. | | | | That which you can do today, please do it; do not |
| Bookkeeping is the proper recording and storage of | | | | postpone it to tomorrow. This is a vital principle for |
| business records such as receipts and might also | | | | record and bookkeeping. In other words do not wait |
| involve doing some basic accounting calculation. The | | | | until the end of the month or the end of the financial |
| keeping of records is vital for the success of any | | | | year to get your records in order in preparation for |
| business as it enables you to see profit numbers, | | | | filing your tax returns. When your bookkeeping is |
| monitor the growth of the business and accurately | | | | constantly in good order, you avoid the stress of |
| calculate tax and tax deductions. Good records are | | | | having to deal with a huge mound of records. This |
| important in determining the best cost for your product | | | | huge pile at the end of the year will feel insurmountable |
| based on changing market conditions and come in | | | | and may lead you into bigger problems like incurring |
| handy when applying for loans. It must be said that | | | | penalties for filing your tax returns late or filing incorrect |
| many small businesses sometimes consider the | | | | returns. Consider dedicating some time weekly or daily |
| keeping of business records as an unwelcome | | | | for record and bookkeeping where you update all your |
| distraction to their day to day core business | | | | records and file all the receipts under well defined |
| operations. But records and bookkeeping can be easy | | | | headings. |
| if you know how to do it. | | | | The time, energy and money you put into bookkeeping |
| When you are running a small or a home based | | | | on a daily and weekly basis will be worthwhile in the |
| business, every purchase you make has a potential | | | | end. |
| implication on the profit your business returns. An | | | | For tips on Bookkeeping and Record Keeping see the |
| example is if you are operating a home based | | | | the source information links below. |
| business you may be able to get tax deductions on | | | | |