BASIC (very basic) BOOKKEEPING METHODS

Topics
  • Information required for all expenditures
  • Example of typical categories
  • Ways to compile information for tax returns
    • Paper ledger
    • Disbursements with multiple categories
    • Category totals
    • Arithmetic accuracy
    • Use adding machine with tape
    • Legibility
    • Tedious
  • Software
    • Check register
    • Disbursements with multiple categories
    • Detailed transaction report
    • Income & expense report
    • Excludes assets & investment
  • Piles
    • Use adding machine with paper tape
    • Keep receipts in each pile together
  • Retaining source documents
    • Until the period of time the IRS & state have to audit expires
    • General rule: 3 years from the date the return is filed
    • Special rule: 6 years if certain criteria are met
    • New Mexico: December 31 of the 3rd or 6th year after the return was due
    • Digital copies are ok