A paper-first record system for a new small business

Create five basic places for information

Use separate locations for income, expenses, mileage, taxes and permanent business documents. A physical accordion file or monthly envelopes can work initially if records are protected and backed up.

Use a duplicate receipt book when accepting payment away from a computer. Record date, customer, amount, payment method and business purpose consistently.

Separate business and personal activity

A dedicated business bank account and payment method make reconciliation easier. Write the business purpose on unclear receipts while the transaction is still fresh. Deposit business income consistently rather than spending unrecorded cash.

Set a weekly appointment with the records

Once a week, photograph or scan receipts, match income to deposits, record mileage and note missing documentation. Once a month, total categories and save statements. A tax professional can then advise how the records should be classified.