How to Set up an Easy Record Keeping System 2021


An easily understood record keeping system allows you to keep track of paperwork your business generates, as well as transactions completed. It is important to know what your business' needs are before you set up an easy record keeping system.


1Obtain file folders, an office calendar and journals to maintain the different financial and accounting records.

Look through your business records and set up each folder based on the needs of your company. One company may rely more heavily on financial record keeping while another business may may focus on other types of records.

Set up your filing system, either alphabetically or using another method. Include folders for property, rent, equipment and your business' equipment.

Learn about the basic record keeping accounting categories you will need for your business. Knowing these makes it easier for you to set up an accounting system you understand. Your accountant and tax preparer need to be able to understand it as well.

Devise a"Chart of Accounts."This holds records pertaining to your assets, liabilities, owner's equity, revenue, cost of goods sold, your operating expenses and any miscellaneous income or expenses.

Allow for skips in the numeric sequencing of your Chart of Accounts. This allows for business growth and the addition of new files and categories as you need to add them.

Record each transaction in the applicable business journal, as it is completed.

2Turn your attention to the legal area of your business. Create folders for these documents. Your licenses and permits to operate must also be stored and easily retrievable.

3Create folders for your marketing and advertising promotions, along with a folder for professional fees you charge.

4Create folders for human resources and payroll, if you have employees.

5Set up a file folder that holds information about the supplies you order and where you buy them. Finally, include a folder for records of your utility payments.

6Include folders for office supplies, ordering and where you buy them.

7Make up folders reserved for your business' utilities and payments.