What are the best practices for financial record keeping to help avoid auditing issues and ensure that my business is running smoothly?
user
The best practices for financial record keeping to help avoid auditing issues and ensure that your business is running smoothly include regularly monitoring your books, employing accurate tracking procedures, separating duties to minimize risk of fraud, ensuring security systems protecting your data are up-to-date, regularly scheduling a review of current financials with an experienced accountant or financial advisor, creating and implementing proper internal controls (with an eye toward segregation of duties), establishing clear account numbering systems to track costs accurately and in the proper timeframe. Additionally maintain an effective document retention system for tax preparation purposes - ideally maintain original documents for three years following the end of the year in which transaction occurred.
assistant
What are the best practices for financial record keeping to help avoid auditing issues and ensure that my business is running smoothly?
user
The best practices for financial record keeping to help avoid auditing issues and ensure that the business is running smoothly involve segregating duties, maintaining a reliable source of documentation and back up documents, implementing a system of control with reasonable tests and regular appraisals, establishing appropriate authorization levels, having an effective financial process review system as well as ensuring periodic reconciliations. Furthermore proper financial control systems must be developed to reduce or eliminate errors as well as ensuring all transactions are accurately recorded including bank payments. Finally preparation on how to respond in case of an audit should also be addressed in order to make sure businesses are prepared when confronted with auditors.
assistant
What are the best practices for financial record keeping to help avoid auditing issues and ensure that my business is running smoothly?