The "Four S" Approach
S is for...system
Spend time setting up a system which you stick to. Allocate a regular time every week/month to deal with your financial administration, or make
it a key task for a trusted employee. File your records logically - put receipts in date-marked envelopes and file bank statements in order.
S is for...separate
One of the biggest mistakes business owners make is to mix their personal and professional finances. It is best to treat the business as a separate
person, from which you only take income in the form of wages, dividends and in claiming back business expenses against receipts. So keep it separate -
and simple.
S is for...security
The fewer people involved in your record keeping, the fewer the errors that are likely to creep in. Make it very clear whose responsibility it is to
maintain records. It is a good idea to password-protect your computer records, and only divulge the password to a small number of people.
S is for...(safe) storage
Even if you choose to keep all your records on a computer, it is vital that you keep a regular (weekly, if not nightly) electronic back-up, and a paper
copy elsewhere. Store records that cannot be copied, such as chequebook stubs and paying-in books, in a fireproof box.