Lesson 1, Topic 1
In Progress

3.3. Manual record keeping.

ryanrori January 20, 2021

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Some business owners may want to use a simple, paper-based record keeping system. There are certain advantages to using manual record keeping, as listed below.

Advantages

  • Less expensive to set up.
  • Correcting entries may be easier with manual systems, as opposed to computerised ones that can leave complicated audit trails.
  • The risk of corrupted data is much less.
  • Data loss is less of a risk, particularly if records are stored in a fire-proof environment.
  • Problems with duplicate copies of the same records are generally avoided.
  • The process is simplified as you don’t need to be familiar with how accounting software calculates and treats your information.

Streamline your manual record keeping

  • Sort and store all paperwork, receipts and payments in 12 separate months.
  • Keep all original documents and date all correspondence.
  • Record all transaction dates and payment amounts.
  • Save all online financial transactions by month and financial year in your inbox and in a separate folder on your hard drive.
  • Backup all electronic records on an external hard drive or other storage device other than your computer’s internal hard drive.
  • Capture nearly all of your income and expenses in statements from both your bank and credit card accounts.
  • Request that all statements and bills be sent on a monthly basis – allowing you to reconcile all financial records each month.