Many business owners don’t keep good records. Some don’t understand bookkeeping; others understand it, but may be afraid of what the numbers might tell them. Think of it this way–bookkeeping is the glue that keeps your business together. If your records aren’t in good shape, the business could fall apart. A healthy business is monitored through its records on a regular basis so you can find problems and correct them before it’s too late.
An audit trail is nothing more than a record of all your invoices and checks in numeric order. The thing to remember is never skip numbers. Record voided check and invoice numbers in numeric order with all other checks and invoices, only denote each one that is “voided.” This assures there will be no gaps in your numerical sequence and leaves a proper audit trail.