Bank Deposit Records
Classic mistake:
Not keeping detailed records when you make deposits to your business account.In order to keep proper financial records (no, a shoe box full of papers is not considered proper), you should be tracking both expenses and income. Unlike expenses, where bank statements and the included check copies* can be easily used to record and categorize expenses, income can get a bit more tricky. Your deposits will show as a single “batched” credit to your account. Regardless of whether it’s a single check or 20 checks, the deposit will appear as one totaled number.
When the time comes to get your numbers in order and to update your company records, these deposits will lack the details to be properly recorded for specific customers, products, or types of income.
A simple routine of making copies of all deposit items and noting the deposit date and total will make things much easier for you when you get around to updating your books. With each deposit broken down, you can make sure you properly record your income.
*Note: Not all banks include check copies or scans with your statement by default. Make sure you are signed up for this option, getting the info after the fact can cost as much as $5 per check!
