Back Up Files on Paper
In our digital age, paper documents may seem unnecessary. But digital data can be lost or compromised with the push of a button.
You don’t need to lose office space to giant metal file cabinets. Simple, inexpensive drawer systems can do the job for any small accounting office.
You should keep one complete set of files for your vendors, another for general expenses, and a third for customers. In addition, create a file for each asset and liability that shows up in your books. And of course, allot some records storage space for tax returns.
Easy Access to All Your Files
Easy access to important documents is essential for any accounting office. Even if you are just starting out, and do not need the capacity of a drawer system. Easy access lift off lids boxes are an alternative. They can also be easily stacked and are easily accessible if the IRS comes calling.
Let’s say one of your small business clients is selected for audit. The IRS wants to see receipts for travel, meals, and entertainment for the year. Speedy access to backup documents can prevent part of the expense deduction from being disallowed. If this happens that means increases in taxable income, a new tax bill, along with penalties and interest. With the right organization system, those crucial documents are always on hand.
Preventing Paperwork from Becoming Overwhelming
As your accounting business grows, so will your records storage. The tendency is to try and keep everything. But excess can lead to confusion and disorganization. Maintain a scheduled retention and destruction policy so that only the most essential documents are kept and dated documents destroyed.