Shoeboxed has been voted as the best receipt scanner app for tax season by Hubspot and given the Trusted Vendor and Quality Choice awards by Crozdesk. Creating a new file at the beginning of each year is a helpful way to save time and organize your information. This will make it easier to delete records you no longer need, like when the seven-year retention period has ended. Also, don’t throw away any records related to your current year’s tax preparation or any unresolved health insurance premiums or disputes for at least a year. This will ensure that you have all the information you best record keeping for small business need in case of an audit.

The best bookkeeping software for small businesses

Bookkeeping, in large part, has to do with accurate recordkeeping. This means recording transactions and saving bills, invoices and receipts payroll so you have all the data you need to run reports. Accounting software makes it easy to store these documents and reference them in case of an accounting error or audit. Double-entry accounting enters every transaction twice as both a debit and a credit. Your business’s books are balanced when all of the debits equal (or cancel out) all of the credits.

Use accounting software

• This inability to conform to GAAP’s requirements may not apply to very small businesses which only need to be able to illustrate a method of meeting reporting requirements for taxes and employees.
• Sage 50 Accounting is especially appropriate if your company needs robust inventory tracking.
• If you manufacture goods, your inventory accounting entries will reflect several stages of completion.
• ZipBooks’ iOS app has disappeared from the App Store, and it’s never had a Google Play app worth mentioning.
• We can spot trends, like which products are selling well or if we need to change our strategy.

The dashboard is well organized with clear graphics for each feature and easy-to-read reports that simplify finances for non-accountant business owners. If you want fully featured accounting software with an excellent app, clean dashboard, and affordable price, we recommend Xero. Based on its features and pricing alone, it’s a great bookkeeping and accounting company for most business types, from freelancers to LLCs.

Types of Record Keeping Apps

Add an unlimited number of free sub-users to your account, such as family members, employees, accountants, and tax professionals. Keep in mind that if you pay yourself a salary, you can generate pay stubs to show proof of income to banks and the IRS. However, in some situations, the IRS can go back six or seven years to audit your taxes. The time limit for filing a state tax return varies from state to state, so work with a tax professional to get tax forms and determine the time limit in your state. The following are other documents that are essential to keep, and the timeframes for keeping them are as follows.

Be Prepared for Large Expenses

At the end of a drive, you’ll click the “End Mileage Tracking” button to create a summary of your trip. Each summary will include the date, editable mileage and trip name, and your tax deductible and rate info. Shoeboxed integrates with 12+ apps to automate the tedious tasks of life, including QuickBooks, Xero, and Wave Accounting. Importing e-receipts to your Shoeboxed account is as easy as syncing your Gmail with Shoeboxed, using Shoeboxed’s special Gmail Receipt Sync feature. Shoeboxed also has a user-friendly web dashboard Partnership Accounting to upload receipts or documents from your desktop. Shoeboxed’s mobile app lets you snap photos of paper receipts and upload them to your account right from your phone.

• If you don’t need quite as many features as Wave offers, ZipBooks is a solid free accounting software alternative.
• Like Zoho Books, Kashoo’s automation is its selling point—and unlike Zoho Books, it syncs with SurePayroll, one of our top payroll providers.
• At the beginning of the year, take a look at the list of deductible expenses and determine which categories you’re most likely to spend money in.
• Additionally, they ensure your records are securely backed up digitally.
• All you have to do is scan the paper, check the details, then move on to the next one.