By Donna Love

Are you aware that failure to keep proper records can be costly? For instance, if you fail to enter even the smallest business expense into your recordkeeping system, you'll be overstating your business income. Consistent neglect on your part can substantially alter your true business picture. There are some important basic considerations in maintaining your business records that shouldn't be taken lightly.

• Get receipts and save them.
• Maintain your recordkeeping system regularly. Don't procrastinate. Time has a habit of rapidly slipping away. If you continually delay entering your receipts and expenses, you'll find yourself with a large headache once you finally get around to it. It only takes a few moments to daily make these entries yourself.
• Open a business checking account. It is unwise and confusing to co-mingle your business funds with your personal funds. A separate account provides a clear audit trail and you will know at all times the status of your business account.
• Pay all expenses by check and get receipts. If you use personal cash or write a personal check for a business expense, pay yourself back by check. Otherwise, you'll be unable to analyze your expenditures.
• Should it become necessary to make a deposit to your business checking account from personal funds, indicate this fact on your check register next to the deposit, indicating the deposit was not business generated revenue.
• Record all sales. Don't get in a hurry when you're busy and figure you'll make a note of sales later. You'll forget!
• Endorse all checks for deposit only with your business name immediately. It's wise to invest in an endorsement stamp.
• Don't keep checks and cash lying around. Make deposits daily.
• Label your business deposit slips so you'll be able to keep them separate from your personal deposits. You may even want to use different banks to avoid confusion-one for your business account and one for your personal account.
• Balance your checking account as soon as the statement arrives to avoid future problems.
• Keep a record of each job you do. Keep work order forms and estimates.
• Conduct a regular inventory of merchandise and supplies so you know where you stand at all times.
• Keep your mileage log current. Mileage can be deducted as an expense. Don't assume you'll remember your travel miles. It's amazing how mileage adds up.