With business bookkeeping and basic tax tips for new and old entrepenuers

Monday, November 10, 2008

How to use your business checking

Business School 101- Lesson 2

From: Alamo Bookkeeping Associates

Alright, so now you have gone to the trouble of opening a business account at a bank, you now feel "official" and are wondering how you should use this account.

Here is my advice: Try to use it for everything you can if it is an expenditure for your business. When you go to the Office Max or whatever office store, use your business checking. When you take out permits or licenses, use it. When you buy food or go out to dinner and you are doing it with or for a client, use it. In short, you want to use it for whatever you are purchasing or getting a permit for, even utilities for a business location. One of the biggest headaches at the end of the year for small businesses is trying to decipher what you spent, where and why. If you mix these expenses with your personal expenses, you have one big headache at the end of the year trying to remember why you bought something and what it was for. If you pay cash you may lose the receipt or forget to record cash spent on the business.

Next-what to write in your check register.

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