This document discusses the importance of record keeping for small businesses. It notes that keeping good records of customers, sales, correspondence, inventory, and business operations is crucial for monitoring business progress, preparing financial statements, and tracking deductible expenses. Maintaining a separate business checking account makes it easier to distinguish between business and personal finances and can help establish the business as an independent contractor. The document also provides guidance on paying yourself through business checks deposited into a personal account and maintaining proper documentation for income, expenses, entertainment, and listed property.

1. Record
Keeping
FOR ASMALL
BUSINESS

2. RECORD KEEPING
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What do you know or want tolearn about record
keeping?

3. Introduction
Record keeping
importantforsmall
businesses
• Sole proprietor
• Partnership
• Corporation

4. What is RecordKeeping?
RECORD KEEPING
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Remember – Keep good records, both
business andpersonal

5. • Customer records
• Sales records
• Correspondence
• Inventory
Business Operations, TrackingDetails

6. BENEFITS OF KEEPING RECORDS
• Monitor the progress of you business
• Prepare Financial Statements
• Keep track of deductible expenses

7. BENEFITS OF KEEPING A SEPARATE
CHECKING ACCOUNT
• Much easier to keep track of business income and
expenses.
• Validates claim of being a business rather than a
hobby.
• Helps establish status as an independent
contractor vs being an employee.
• If a sole proprietorship, just open a separate
personal checking account.

8. PAYING YOURSELF
• Write a business check to yourself, then deposit
it into your personal account.
• Known as a withdrawal or personal draw, it is
for paying non-business and/or personal expenses.

9. Income Documents
Expense Documents
Entertainment, Meals, and Travel Expense Records
Supporting Documents
Filing Supporting Documents
Listed Property

10. Summary
• What final questions do youhave?
• What have youlearned?
• How would you evaluate thetraining?
RECORD KEEPING
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