- Set aside time each and every week to sort and file your receipts: purchases, sales, bank statement, credit card's statement, etc. separately. Categorize them accordingly to method that works for you. By doing this consistently, the chore of paperwork becomes less stressful.
- Control your cash on daily basis. Count your cash balance at the beginning of the day and end of the day. Make sure it matches your records.
- Keep your business finance separate from personal finance. Have two (2) separate bank accounts instead of one and have two (2) separate credit cards instead of one. One for business and one for personal finance. This will make accounts reconciliations a breeze.
- Learn to know what expenses are deductible and not deductible. Meals & entertainment is 50% deductible, interest is deductible only if the loan is related to business, legal and accounting is deductible, rent is deductible (if you operate home-business, a percentage may be deducted), etc.
- Know your due date for GST/PST remittance, payroll, and tax return.
- Perform financial reporting to know your profit, your best products/services, and your best clients. Depending on how much transactions you have, you can either do this monthly or quarterly
- Use reliable and easy-to-use accounting software package, such as QuickBooks or Simply Accounting. There are many good software in the market and most of the mid-level version, priced below $200,-, will suffice your needs. Spreadsheets are not accounting software, thus not formulated to produce necessary financial reports.