Keeping Organized on the Road

A lot of our clients at Open Road Accounting and Payroll Solutions work out of their vehicles and the number one complaint we hear from them is “I can’t keep my paperwork organized”. This inability to stay organized causes problems when we start looking for the paperwork to complete a fiscal period. 

The easiest solution is electronic document handling, and this is what we use at Open Road Accounting. Whether your go with Dext, Hubdoc or another receipt capturing application, the solution is as simple as taking a picture, forwarding an email or dragging a pdf into a drop box. These apps are extremely slick now, and with the click of a button your bookkeeper receives what they need to keep track of your expenses. No more losing paperwork between your vehicle and the bookkeeper's office.

Not into technology? There is a plan for you too! Over the 25 plus years we have been operating we have come up with a very basic system that works well for the more traditional clients and requires very little cash to get started. Start by buying 2 accordion files. Label each of them identically based on your specific business requirements. Place one in your vehicle on the passenger seat or in the back seat. Every time you receive a new piece of paper, drop it into the appropriate section…NOT YOUR WALLET OR THE GLOVE COMPARTMENT. When it’s time to turn your paperwork in to your bookkeeper, drop off the full accordion and replace it with the empty one. When your bookkeeper returns paperwork to you, take it out of the folder and place it in a bank box labeled with the current fiscal year. Put the empty accordion file back in your vehicle and you are ready to go again.

We find that the following labels are a good starting point for most business:

• Bank Statements and Credit Card Statements

• Sales

• Payments received and deposit slips

• Bills to be paid

• Receipts/Bills paid by cheque or debit from a business bank account

• Receipts/Bills paid by a business credit card

• Receipts/Bills paid by any other method (cash, personal credit card, personal bank account, etc.)

• CRA communication

• Ministry of Finance communication

• WCB communication

So, where are the traditional expense breakdowns? What about office expenses versus repairs and maintenance? The truth of the matter is, that if you have an experienced bookkeeper, they will be able to tell what kind of expense it is based on experience and their knowledge of your company. If they are unsure, they will send a quick email or make a quick call to ask for clarification. Paper or ink toner…always office supplies; Home Depot...usually cost of goods sold or repairs and maintenance. Bookkeepers don’t need you to sort that for them. A much more useful way to sort things is based on the method of payment, as most software requires you to enter different methods of payment using different modules.

Keeping your paperwork organized (and flat) increases accuracy, reduces the amount of time bookkeepers must spend on your file, and ultimately reduces your bill.