Most accounting software will give you a suggested chart of accounts based on your industry. This is a great place to start. Sometimes the expense accounts can get overwhelmed with too many details.

A rule of thumb to keep the chart of accounts from expanding is to determine how much will be spent in that category. You generally want to use a descriptive account to track larger amounts. If it is as small amount, but you still want to track it separately, create a sub account under the main expense account.

For example, you may want to keep track of different types of Professional Fees. Use Professional Fees as your main account and then create subaccounts like Legal, Consulting, and Accounting.

QuickBooks Tip: If you create sub accounts, you can hide those accounts when you use the collapse feature in reporting.

If you have reoccurring items, use the memorize transactions function in QuickBooks for quick entry. It is easy to set up and is fully customizable. This function is great for reoccurring bills and invoices.

You can have it set to remind you to enter the bill or invoice. If the amount is the same each period, then set the “Automate Transaction Entry” feature and it will enter it automatically into your books.

You can memorize checks, deposits, invoices and even journal entries. This feature is available in QuickBooks Desktop and QuickBooks Online.

Having clearly defined procedures and workflow for the accounting team is vital for keeping the books current and accurate. It is important to have to do lists and bookkeeping procedures. The more organized the bookkeeping processes the better the workflow.

Create a notebook or even better a digital file that lists the step by step instructions and/or to do lists for daily, weekly, monthly, quarterly, and yearly tasks. Use your accounting software to automate some of these tasks and set up reminders.

Pro Tip: Use your digital calendar to set reminders of important due dates and reoccurring tasks.

QB Tip: Use the Reminders and To Dos feature in QuickBooks and customize your tasks. Use the home page visual template as a basis for creating procedures for workflows.

Co-mingling expenses might not seem like a bad idea, wrong! This can quickly cause huge headaches for your company. Having a dedicated business bank account for checking and savings saves you time when it is time to sum up deductible expenses.

You should get in habit of using different bank accounts for business and personal purchases. If your contributing capital to your business out of your personal assets, make sure you clearly document the contribution.

In general, you cannot deduct personal expenses as a business expense. If you use property both for business and personal use such as car or home office, then the portion of time you use the property for business if deductible. Otherwise, deducting personal expenses on a business is not allowed.

Organizing and keeping accounting records like business invoices, receipts, and expenses can help you run your business smoothly.

If you are a fan of keeping paper records:

• Store them in a secure and safe place.
• Make sure you keep your paper accounting records organized using different labels, different color of folders and sorting strategies (e.g., chronological order).

If you are not a fan of paper records, go electronic instead:

• Scan and saved all documents and create a folder for each accounting records as if you are to save them on a paper record.
• Keep electronic document of accounting information on your devices or in the cloud for safekeeping.

I suggest keeping both a paper and electronic version. That way, you have a backup in case accounting information is destroyed, misplaced, or lost.