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.