Accounting records to be kept by a new business

As a new business, it's essential to maintain accurate and complete accounting records to ensure compliance with tax laws, make informed business decisions, and track financial performance. Here are some essential accounting records to keep:

  1. General Ledger: A general ledger is a comprehensive record of all financial transactions, including income, expenses, assets, liabilities, and equity. It's the foundation of your accounting system.
  2. Journal Entries: Journal entries are used to record and classify transactions in the general ledger. They include date, description, debit, credit, and account numbers.
  3. Invoices and Receipts: Keep a record of all invoices issued to customers and receipts received from customers. This includes details such as date, invoice number, customer name, and payment amount.
  4. Expense Records: Maintain a record of all business expenses, including receipts, invoices, and bank statements. This includes expenses such as rent, utilities, supplies, and travel.
  5. Bank Statements: Keep a record of all bank statements, including deposit slips, checks, and ATM transactions.
  6. Payroll Records: If you have employees, keep a record of payroll transactions, including salaries, wages, taxes, and benefits.
  7. Accounts Payable and Receivable: Keep a record of all outstanding invoices and payments due to or from customers, suppliers, and employees.
  8. Inventory Records: If you have inventory, keep a record of stock levels, purchases, sales, and inventory valuation.
  9. Fixed Asset Records: Keep a record of all fixed assets, including purchases, depreciation, and disposal.
  10. Tax Records: Keep a record of all tax-related documents, including tax returns, receipts, and payment records.
  11. Financial Statements: Prepare and maintain financial statements, including balance sheets, income statements, and cash flow statements.
  12. Ledger Cards: Keep a record of each account in the general ledger, including account balances, debits, and credits.
  13. Trial Balance: Prepare a trial balance at the end of each accounting period to ensure that debits equal credits.
  14. Adjusting Entries: Make adjusting entries at the end of each accounting period to ensure that financial statements accurately reflect the business's financial position.
  15. Audit Trail: Maintain an audit trail by keeping a record of all changes made to accounting records, including date, time, and user ID.

Remember to keep all accounting records in a secure and organized manner, both physically and electronically. It's also essential to maintain confidentiality and ensure that only authorized personnel have access to sensitive financial information.