Basic Bookkeeping for Small Business

Have you ever wondered why there are so manywill probably fall off your chair when you see how
bookkeepers and accountants out there and how theymuch the bill is anyway, so it is merely a choice of
can ALL be making money? No, it's not because theyhow far you want to fall as to whether you sit or
charge so much. It is because most small businessstand.
owners don't know even the basics of accounting.Seriously though, if you want to save yourself some
Most small business owners start with an idea on howmoney, but don't want to learn it all, there are a few
they can make money working for themselves insteadsimple things you can do.
of working for a boss. They love the idea of beingMost stationery stores have accounting books that
able to set their own work hours and of being inyou can buy to record your business transactions. You
control of their own financial future. Let's face it, whoknow, those books that have heaps of columns that
want to work 40+ hours a week to make someoneyou never knew before why anyone would use them.
else rich?Well, now's your chance to show everyone just how
So, they have this idea about how they can work forsmart you are!
themselves, doing something they either enjoy doing orWhen you have finished reading this article, head down
they know how to do well.to your stationery store and buy two of those
Okay, if you are smart enough to start your ownmysterious books with columns. On the front of one
business, then you are smart enough to know how tobook, in big letters, write receipts and on the other
write an invoice and a receipt. You also know to keepwrite payments.
all the receipts for money you have spent. For manyNow every time you receive money, write down the
small business owners, this is where their recorddetails in the receipts book. You know, the date, what it
keeping ends. They shove it all into a box or anwas for and amount. Use all the other columns to
envelope and toddle off down to their account orrecord taxes and to keep a record of the total sales
bookkeeper to let them sort it. Most will then not give itfor different items. Use the payments book in the
a second thought until the bill comes in from thesame way for all your purchases. Then all you have to
accountant.do is total up each month and hand the books to your
If you use this system, you may want to be sittingaccount. You'll be pleasantly surprised when you get
down before you open the bill. On the other hand, youyour next bill at how much money you have saved.