Tips – Using Memo Fields
Our experience shows that the memo areas of bills, credit card charges, and checks in Total Office Manager are greatly under used. It is recommend to always take the time to enter descriptions in the memo areas available in Total Office Manager. Be as descriptive as possible. When you need to research what a payment was for a few months or even years later, you will be glad you took the extra time when the transaction was initially input. Having the details in Total Office Manager will save time combing through paper copies of checks, bills, and credit card statements. All transactions except routine monthly expenses such as utility bills should contain a memo description.
Additionally, in the case of an audit, detailed descriptions in memos can save time and avoid the need to request additional documentation. The auditor will likely ask for a copy of the audit year’s general ledger. Total Office Manager prints the memo on the general ledger printout. We have found that, generally, an IRS auditor will accept Total Office Manager registers as support for expenses when memo descriptions are detailed and precise. Especially in the case of travel and entertainment expenses, always note the place of travel, business purpose, and client name.
Finally, good descriptions in the memo area are especially helpful to your tax preparer – which ultimately results in a more accurate and less costly tax preparation for you!