Shoebox bookkeeping is a process of throwing all financial information into a ‘shoebox’ and that at the end of the year this is given to an accountant to record for taxes. All information is thrown in that might be important to the accounting process in a box. Simply dumping the paperwork into a single place and deciding that they will address it at a later date, at which time it will likely be too late to fix problems that might arise.
A good accounting system is critical to getting good financial information. So why don’t people always have one in place for their business? Excuses include:
No, shoebox accounting is not a good way to run the Profit end of your business. This can make it a hassle to finish and time consuming to complete.
One of the reason why I took business law was to be more prepare to handle any situation in business that require me to be in court because of a lawsuit or if I was the one suing for negligence. The class showed me the importance about how the court works when people or business are using contracts to make sure requirement are met and how they can breach. Another thing that I learn was how to be aware of surrounding in situation that can make or break a case in the court.
We went through a lot of scenarios in class how the court handle settlement in cases between parties. The one that stood out to me that my teacher mention when you’re out in public was “never be a hero.” It was odd when she said it but the examples she show were here reasoning.
To help be more aware of the law in your personal life or business I have created a pdf file you can download free of the term and key concepts from the business law book. It is a condense version of the important part of the book.
Blogs are about learning basic accounting, accounting formula, tips and advice, and investment concepts and terms.