In the US, there are over 654,000 certified public accountants. That's a lot, right? Yet record keeping for small business doesn't usually employ a full-time accountant: instead, you need to handle it yourself.

Simple record keeping for small business means a simple tax season. One way you can make it easier is by making pay stubs for your employees and contractors. You can check it here to know more on how to generate pay stubs for employees efficiently and with less time.


We've pulled together expert advice on record keeping. No matter whether you've just started your company or are an old hand, these tips can help you.

Ready to find out the secrets to simple record keeping for small business? Then read on!

1. Open a Bank Account for Your Business
If your business earnings go into your personal bank account, things get complicated. Any other income you have coming in gets muddled. You may not put aside the right amount for taxation.

The way to solve this is to open a separate bank account just for your business. This isn't just sound financial advice either: if you run an LLC, a partnership, or a corporation, it is a legal requirement.

You should get a business credit card too. This lets you build business credit and improve your credit score.

2. Keep Track of All Income
Sometimes clients are going to pay their invoices late. That's the reality of being in business. Whenever you get paid, you need to immediately put aside some for tax.

There are no ifs and no buts here. Put aside your taxable income as soon as you get money in and don't touch it. No matter how tempting it may be to take some cash out of it, leave it for the government.

3. Create Paystubs
Simple record keeping for small business means a simple tax season. One way you can make it easier is by making pay stubs for your employees and contractors. You can check it here to know more on how to generate pay stubs for employees efficiently and with less time.

There are a number of services available that can generate pay stubs for your employees. A few of our favorites include:

• www.paystubcreator.net
• www.thepaystubs.com/create-stub
• www.checkstubmaker.com

If you have pay stubs, you have proof of the income paid to your employees. This makes tax season an absolute snip.

4. Keep Receipts
Making paystubs is just part of keeping records for small businesses. Another important part is keeping track of all your expenditure on business expenses. The IRS places the burden of proof firmly on you: you need to prove that you spent as much as you claim on your tax return.

This means keeping track of receipts for everything that's deductible. Keep them in a safe folder and don't let them be neglected.

5. Put Time Aside for Record Keeping
Don't leave the accounting to the last minute. Every single week, put some time aside for checking over your books.

Look at your expenses and your income. If there's going to be any sort of problem, checking your books regularly will let you identify it sooner. This means you can fix this problem.

Set time aside. We can't stress this enough.

Simple Record Keeping for Small Business: Not an Impossible Task
As difficult as keeping track of your finances can be, simple record keeping for small businesses isn't an impossible dream. Harness these tips, and you'll be set in no time!
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