FOCUS YOUR TIME AND MONEY Ease Your Record-Keeping.(LEADERS & SUCCESS)(IBD'S 10 SECRETS TO SUCCESS)

Byline: Adelia Cellini Linecker

7 Keeping good records of your business can seem tedious and time-consuming. But you can make this necessary task a little easier to manage.

The key is to not let the paperwork pile up: Not only will it become next to impossible to make any sense of it later, but it might also get you into a heap of financial trouble with the IRS. Keeping solid records also helps if you're seeking credit for your business.

There are a few simple steps you can take to ease record keeping.

** Keep all evidence. For each business purchase and receipt, you should have proof of the date, the amount, the payee, the purpose of the expense or the reason for your receiving payment. Canceled checks and credit card receipts are acceptable documents for evidence, but often you need more. So keep invoices and receipts from vendors and clients.

** Use a computer. Barbara Weltman, author of "Tax Deductions for Your Small Business," says computer-generated records save time and often are more accurate than handwritten entries.

As your business grows, consider storing receipts for expenses you use as deductions electronically. Rather than collect documentation that often turns into unmanageable clutter, invest in a scanner. If you use online banking, make sure you keep electronic receipts of your transactions for record keeping.