Should you retain cheque stubs from customers?
Is it necessary to keep stubs for all deposited cheques? Personally, I tend to keep just the deposit reports, as QuickBooks already provides detailed information on how each payment was allocated for every customer.
One response
It’s generally a good practice to keep records of cheque stubs, but the exact requirements can vary based on your Accounting practices and local regulations. Here are some points to consider:
Record Keeping: Keeping cheque stubs can provide an additional layer of documentation in case of disputes or discrepancies. They serve as proof of payment and can be helpful if the need arises to verify transactions.
Accounting Software: As you’re using QuickBooks, it’s true that the software will track and record all relevant payment information. However, having physical or digital copies of cheque stubs can be beneficial for audits or when needing to reference specific transactions.
Legal and Tax Requirements: Check if there are any specific regulations in your area regarding the retention of financial records. Some jurisdictions might have laws dictating how long you need to keep certain documents for tax purposes.
Personal Preference: Ultimately, it’s also about your personal and business preference for record-keeping. If you feel secure with just the reports and QuickBooks, that may suffice, but having the stubs can provide extra assurance.
In conclusion, while you may not need to keep cheque stubs if you have sufficient records, it can be beneficial for due diligence, auditing, and ensuring clarity in your financial practices.