Chapter 6.Setting Up a Recordkeeping System
When you’re running a business, you need to keep track of what you’re doing. That means keeping records about what you sell, whom you sell it to, and how much money you make (or don’t) from what you sell. These records not only help you manage your business on a day-to-day basis, they also help you prepare your yearly taxes.
This chapter walks you through the records you need to keep and suggests how to set up your own recordkeeping system.
Why You Need to Keep Good Records
How profitable is your business? You’ll never know if you’re not keeping track—which is reason enough to set up some sort of recordkeeping system.
Keeping records can be both a defensive and an offensive activity. It’s defensive ...