Accounting Articles > Record Keeping / Bookkeeping:

Basic accounting procedures

Where do we begin? Capture the evidence. Create a fair accounting of the entity in question. Prepare a tax return inside existing tax law. Document everything.

That's about a simple as it gets. Of course I am over simplifying a ridiculously complicated process.

Frankly, there's only one thing that I need clients to do, and that's to capture the evidence:

• Keep your receipts.
• Keep your invoices.
• Make sure that you have original documentation. If it looks, acts, or even smells like accounting, keep it in its original form.
• Don't scan it into a computer. Electronic records are by definition tainted, and therefore are not evidence in the event of an audit.
• Bank statements, copies of canceled checks, payroll registers, everything should be kept together.

If your return gets examined in an audit, the auditor will want to see the original evidence.

Your next accounting procedure should be to give us a call. The Special Accounting Packages section of this website may have a special offer which will benefit you. If you are a new business, have an audit, need returns prepared, or simply want a second opinion, we can help. As highly recommended CPA's and Enrolled Agents providing financial accounting and taxation services in the Chicagoland Area, we have the experience you need. Simply call or click one of our specialists today.