Separate the company’s money
Use business accounts and documented owner contributions, reimbursements, distributions, loans or intercompany activity. Avoid treating the company account as a personal wallet.
Choose a consistent chart of accounts
Revenue, cost of sales, payroll, contractors, rent, software, insurance, government fees, taxes, assets, liabilities, equity and other categories should map consistently to the way the business actually operates.
Reconcile to external evidence
Bank statements, merchant settlements, invoices, receipts, payroll reports, provider statements and tax filings should reconcile to the books. A spreadsheet total without source evidence is not a complete accounting control.
Preserve records intentionally
Define who keeps contracts, formation documents, tax records, invoices, receipts, insurance, licenses, payroll records and proof of filings. Retention periods vary by document, law and professional guidance.