Set a traceable ledger, document transactions, reconcile statements and review cash operating results before a clear monthly close and tax handoff.
Identify the business entity, reporting period and accounting method. Set categories for income, refunds, fees, operating expenses, assets, liabilities and owner equity. Choose a system that retains source documents and an audit trail; record how personal and business transactions will be separated.
Capture date, amount, counterparty, business purpose, category and a source-document reference in the ledger. Match gross platform activity and fees to payouts without duplicating net deposits. Flag unclear items and retain evidence even when a special receipt exception might apply.
Compare every bank and card statement with the ledger. Explain outstanding deposits/payments, fees, refunds and transfers. Review receivables, payables, inventory and asset records where relevant. Resolve or document each difference before closing the period.
For a simple cash-basis service activity, calculate operating surplus from the reconciled amounts and compare the time invested. Keep asset purchases, loan principal, owner drawings, accrual adjustments and noncash tax deductions in the appropriate separate schedules.
Save the reconciled ledger, statements, exception list and dated reports. Review a tax projection separately, then use its annual target for payment allocation. Preserve receipts, asset basis and other records according to their applicable retention periods, and keep a restorable backup.
Document the ledger structure and accounting-basis decisions; keep transactions in the chosen accounting system. · Maintain a list of missing evidence and classification questions, not an automatic transaction feed. · Write the statement-to-ledger reconciliation and unresolved differences. · Prepare a dated close checklist and handoff note with source locations.
Summarize one month’s reconciled cash operating results and recorded hours.
Allocate an established annual tax target using known coverage and payments.
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Choose records that explain business income and expenses, and retain supporting documents that can be retrieved for review.
Vehicle deductions have specific business-use and substantiation rules. Keep trip dates, purpose and distance alongside the expense records.
Books supply inputs for tax work. Estimated payments depend on the return and timing rules, so use a verified target before allocating payments.
Check recurring classifications against the underlying transaction before applying them broadly.
Record what changed, why and which period was affected, instead of silently altering an earlier close.