December 3, 2008 - McLean, VA- As news reports predict worsening retail sales and consumer confidence continues to wane, it would be easy for souring moods to prevail and for small business owners to fall behind in their bookkeeping. However, Greg Jones, CEO of Bookkeeping Express, says now is the time to be as attentive as ever to balancing the books.

“When times are tough, business owners should remain as current as they can with their books,” urges Jones. “Beyond just knowing revenues and expenses, bookkeeping helps owners and managers organize themselves. Psychologically it can set the mind at ease knowing where the business stands at the end of each day.”

Recognizing the positive impact that consistent bookkeeping can have on the U.S. small business community, Bookkeeping Express offers ten practical bookkeeping tips for this holiday season:

1. Maintain Daily Records

If you don’t have time to do a little bookkeeping each day, when will you find time to record a month’s or a year’s worth of records? Different people have different systems, what matters most is that you have a system and use it daily.

2. Bank Statements and Credit Card Statements

These statements should always come to the business owner or card holder unopened. Review them thoroughly before passing them to the bookkeeper or other employee, thereby preventing unauthorized checks or credit card usage. Unnoticed errors on these documents represent the biggest losses within the small business community.

3. Petty Cash Box

Set up a petty cash fund for small purchases rather than charging a credit card or personally paying for the smaller items in order to gain control of the small charges that can add up to big expenses. Using a metal cash box, add in currency and coins that total $50.00 or $100.00 as a starting point. When a small item needs to be purchased, use the money from the petty cash box and replace the money with the receipt, keeping the value of the box at the starting amount. When all of the cash in the box is gone, replenish it by writing a check to cash and expensing all the receipts.

4. New Year – New Storage Box

Keep all records for one year in one box, including the tax return for the year, bank statements, cancelled checks, paid bills, financial statements and any other backup files in case you are asked to review your books.

5. Switching Computer Systems

When switching from paper books to computer software or switching between accounting software packages, do so at the end of the quarter. Run both systems for the next quarter simultaneously to make sure both systems are equal before disposing of the old method.

6. Don’t over-categorize

When categorizing expenses, don’t make it harder than it needs to be. For example, when categorizing office supplies, you don’t need to separate fax paper, copy paper, letterhead, printer cartridges, etc. All of these items can be listed under ‘office supplies’.

7. Separate Accounts

Have a separate checking account and credit card for your business. Not only will you be able to track expenses more efficiently, but, in the event that something goes wrong or the IRS wants to review your books, you will only need to review the one account.

8. Save all Receipts

The IRS may only need receipts for expenses over $75.00; however, by not tracking the smaller items, you could be losing potential expenses that can be written off.

9. Not properly classifying employees.

The proliferation of independent contractors, consultants, and freelancers has made it difficult to determine who is on staff and who is not. This results in misfiling when it comes to filing taxes, since there are different rules and regulations for employees and non-employees.

10. Chart of Accounts

When starting a business, determine what expense categories to track by taking a look at the tax return you will need to follow. If you are required to file a Schedule C, list the categories that apply to your business as your expense items on your Chart of Accounts.

With more than 28 million small businesses around the United States, Bookkeeping Express offers a much-needed service to companies that are not equipped or do not wish to handle accounting responsibilities such as setting up charts of accounts and general ledgers, monthly data entry, processing and managing accounts payable and accounts receivable, producing monthly reports and tax reporting. Plus, Bookkeeping Express utilizes a Custom Flex Pricing Model that is based on the clients’ needs instead of a one fits all, hourly billing approach.

About Bookkeeping Express

Bookkeeping Express, a national company focused on providing professional bookkeeping practices to small businesses, was founded in 1984 in California and grew to over 150 locations through licensing agreements. In 2007, Greg Jones, along with Bob Stocker and Merritt Green, purchased the company and launched the new business model in McLean, Virginia in January of 2008. Bookkeeping Express is currently registered to franchise in 41 states. For more information, please visit www.bookkeepingexpress.com or contact 877-525-5337.

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View Company Website: http://www.bookkeepingexpress.us