The foundation of solid business record keeping is learning to track your expenses effectively. It’s a crucial step that allows you to monitor the growth of your business, build financial statements, keep track of deductible expenses, prepare tax returns, and support what you report on your tax return.
§ Before launching your virtual paralegal business, you must determine the type of payments you will accept from your clients such as checks, credit cards, PayPal and/or mobile billing.
§ All time entries should be entered daily.
§ A detail explanation of work performed must be included with time entries.
§ Client’s invoice should show the breakdown of each assignment and charges.
§ You should create your business policy to invoice your clients within 15-30 days of completing their projects, if you did not require full payment upfront.
§ All checks should be deposited immediately.
§ If services are paid in cash clients must be issued a receipt. A copy of the receipt must be scan to the client’s file.
§ Copies of all checks and money orders must be scanned and placed in the client’s file.
§ You should not continue to accept personal checks from a client whose check was returned in the past.
§ Going forward you should only accept certified checks, money orders, credit cards or PayPal.
§ Online business accounting software such as, FreshBooks, QuickBooks or Xero.com can help you organize your business accounting.