1. Separate personal and business finances
Always use a dedicated business bank account and card. Mixing personal and business transactions makes reconciliation and tax reporting difficult.
2. Record transactions regularly
Set aside a short weekly session (15–30 minutes) to import bank transactions, categorize expenses, and reconcile accounts. Small, consistent efforts prevent backlog.
3. Use consistent categories and naming
Agree on a small set of categories (e.g., Office Supplies, Advertising, Travel) and stick to them. Consistency improves reporting and helps your bookkeeper or tax preparer.
4. Keep receipts and backup documentation
Scan or photograph receipts and attach them to transactions. Good records support deductions and help if questions arise.
5. Reconcile and review monthly
Reconcile bank and credit card accounts each month, review profit & loss and bank balances, and flag any unexpected items. Monthly reviews catch errors early.