Must Have Accounting Tips: Part 2

Tip 4.) Do accurate invoicing

Are invoices just prompts for your clients to make payments? No, they are much more! They’re records of the terms of a transaction, and because of this, it’s critical that you enter information that is accurate and complete. It’s also important to understand invoice vs. receipt differences.

Tip 5.) Get Donation and Contribution Receipts

This seems like a simple request, but it could mean the difference between a contribution being accepted as a tax write-off or it being denied altogether. Don’t make it harder on yourself (or the charity) than it needs to be; each added step or delay makes it less likely that you’ll make that same generous contribution next year.

Tip 6.) Schedule Profit and Loss Statements

They provide a key overview of several areas of your business that can help summarize the activity for a given period, which can be monthly, quarterly, or yearly, depending on your discretion and the activity of your business. It’s important to find the right time period in which to update your P&L, as your accountant may notice discrepancies from one report to the next that need to be corrected.