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Henry B. Murphy, Jr.
Certified Public Accountant
10 Hereford Drive, Princeton Jct, NJ 08550
(609) 497-2929
MANUAL BOOKKEEPING GUIDELINES FOR SMALL BUSINESS
Purpose: Good records can save you time and money. You need good records to back up your tax return position and to maximize the benefit you receive for your accounting fee dollar.
Cash activity summaries form the basis for all record keeping systems. The following style of summary is the first step for all businesses, from IBM to the smallest consulting practice or lawn service:
Annual Cash Summary
Receipts:
Cash Received Sales $xxxxxxx
Other: sales tax, loans, stock sales, etc. xxxxxxx
-------
Total gross receipts xxxxxxx
Disbursements:
Purchases xxxxxxx
Net Payroll xxxxxxx
Business supplies xxxxxxx
Office supplies xxxxxxx
Rent xxxxxxx
Utilities & phone xxxxxxx
Health Insurance xxxxxxx
Other Insurance xxxxxxx
Interest xxxxxxx
Car and truck expense xxxxxxx
Legal and professional xxxxxxx
Rental of equipment xxxxxxx
Repairs xxxxxxx
Capital assets xxxxxxx
Taxes and licenses xxxxxxx
Sales tax remitted xxxxxxx
Other xxxxxxx
Draw (proprietors) or loan (corporations) xxxxxxx
--------
Total disbursements xxxxxx
--------
Net increase (decrease) in cash xxxxxx
Beginning cash balance
(this should reconcile to bank statement) xxxxxx
--------
Ending cash balance
(this must reconcile to bank statement) xxxxxx
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Accrual activity, if required for your business, might be the following:
Year end accounts receivable $xxxxx
Year end trade accounts payable xxxxx
Year end merchandise inventory xxxxx
Other non cash data might include payroll summaries, loan amortization schedules, lease agreements, capital asset information, insurance policy abstracts, and car mileage summaries.
Bring the above types of summaries to your accountant to maximize the value of his time and minimize the amount of your fee.
For more assistance: 1) call 1-800-829-FORM for IRS Publication 552 "Recordkeeping for Individuals" or Publication 583 "Taxpayers Starting a Business", 2) see any basic accounting text, or, 3) ask us for a consultation on the design and installation of an accounting system!
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