Small Business Finances
You need to keep track of your small business finances! Create a document storage box with folders into which you will be organizing computer files.
This is where you will save your bank’s business communication articles.
Let me give you some tips on how to organize computer files into folders which will hold all e-Documents relating to your small business finances.
Start by creating a folder called “Office FINANCES” as a branch of “YOU”.
Next we will create sub-branches of “Office FINANCES” in order to end up with a folder tree resembling the one below.
- Create a folder as a sub-branch of “Office FINANCES” and call it “Balance Sheet”. As the folder name suggest this is where you will save your balance sheet and profit and loss accounts for your business.
- The next folder that you will create for your small business finances will store all your banking statements, business communication articles and correspondence. Create a folder called “Banking” as a sub-branch of “Office FINANCES”. The next two folders will be sub-branches of “Banking”.
- The first is for all the e-correspondence between you and your bank and it is logically called “Correspondence”
- The second is for all your banking statements. Name it “Statements”.
If you have more than one account at the bank you may want to create two sub-branches of “Banking” each named with your account type.
If you have accounts at two or more banks you might want to check out my section “Personal Finance Organizer” for setting up folders for different banks and several bank accounts. You will find the link to this section in my Site Content page.
Next we will create a folder into which we will save our business’ income tax returns and related e-documentation with you local revenue office.
- Create a folder called “Income Tax” as a sub-branch of “Office Finances”. We will create sub-branches of this folder to identify the different financial tax years. My tax year runs from the 1st of March to the last day in February the following year.
- I have thus named the first sub-branch “2009-2010 Financial Year”. This is where I will store my income tax spreadsheet reflecting all my small business finances and business transactions for the period between the 1st of March 2009 and the 28th of February 2010.
All e-correspondence, documents and notes from and to with my local revenue office and my financial adviser which took place in this tax period is saved here.
- The second folder in my example stores all e-files for the following tax year “2010-2011 Tax Year”.
Go ahead and create folders for all your required tax years all as sub-branches of “Income Tax”.
- The “Profit and Loss” folder is where you will save your business’ profit and loss account. Create this folder as a sub-branch of “Office FINANCES”.
- Whether you have to pay value added tax or general sales tax, you will need to have a folder to save all your related tax returns and e-correspondence.
Go ahead and create a folder called “VAT” as a sub-branch of “Office FINANCES”. Then as you have just done for “Income Tax”, create a folder for each of the same tax years all as sub-branches of “VAT”.
- “2009-2010 Financial Year” and
- “2010-2011 Financial Year”. You get the idea! If you need to create additional folders to fully address your specific business needs go ahead and create them now. When you are finished click on the link below to return to Organizing Computer Files into Folders (Office e-Files)
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