Tax filing time is an ideal time to review your financial affairs. You have to gather information to prepare your tax return at this time. Why not take one more step and do something positive for your financial well-being?
The following suggestions will get you started on your financial review:
Hold a discussion with your family. Spouses and children need to share and prioritize their financial aspirations.
Review your credit use. Keep your credit card bills current. If you're finding that hard to do, it's probably time to cut up some of those credit cards and get your debt under control.
Organize your records. If you had trouble assembling data for your financial review, you need a better system. Set one up.
Internal accounting controls are vital to every business.
The boutique owner needs to be sure that all products are rung up and that all cash is deposited in the bank. The salon and spa owner needs controls to make sure that all services and products sold are captured.
Proper internal controls should be part of everyday procedures in a business. They should work in a way that helps prevent fraud and theft or detects them early.
Having an audit or review of your financial statements once a year will not necessarily detect fraud.
Every business should be sure it has set up an adequate system to safeguard all its assets- cash, inventory, equipment, etc.- with periodic reviews to be sure the controls are working.
Use the following checklist to review your internal control procedures. The list is not all-inclusive and is no substitute for a thorough internal control analysis.
Search Topic: Fraud and Internal Controls
What records should your business keep, and how long should you keep them? There are several categories of records that are important to a business, some for internal purposes and some for tax returns and other government requirements. Let's take a look at these by category.
Search Topic: Recordkeeping for Business