Below is an illustrative explanation of the records you need to keep and the resources to help manage them. Keep both for paper-based and digital formats and tuck them into folders for each of your fiscal years.
There are very few people who love to organize paperwork and record financial transactions. However, if you organize your paperwork as described above, and provide them to a bookkeeper on a monthly basis you will save hours of headache and grief. Waiting to the end of the year, and handing your bookkeeper a pile of unsorted paperwork will cost you more than the time spent getting organized monthly.
Not only is your bookkeeper recording vital information, such as payroll information which is required by law, but you receive monthly financial statements to watch your company operations. To add, if your monthly bookkeeping is taken care of, your year-end reporting and tax returns will be much easier and cost effective.
Can’t afford a bookkeeper at the moment? Find a family member, friend or business student who would be willing to record your paperwork for free or for a small fee.