| > | | | | identify the various Business Accounts required for |
| You have started a small business while still working or | | | | your Synoptic Journal?If you currently work for a |
| to create additional income for your household income. | | | | company or government, secure of one of their |
| You know nothing about accounting or bookkeeping. | | | | employee expense forms. Look at each of the areas |
| This accounting administration part of business scares | | | | identified as expenses - meals, mileage, hotel |
| you a bit and is holding you back from 'Doing IT'. Here | | | | accommodations, taxi, car rental, telephone & cell |
| is a simple approach to achieve the recording of your | | | | phone, air fare, office supplies, etc. This is an excellent |
| business financial books. No prior accounting or | | | | place to identify the various Business Expense |
| bookkeeping knowledge required! his simple | | | | Accounts you need to set up for your business |
| bookkeeping approach is easy and FREE. Starting a | | | | accounting books. To complete your business Chart of |
| small business out of your home, offering products or | | | | Accounts, include a Business Bank Account, Sales, |
| services like business consulting, photography, selling on | | | | COGS (Cost of Goods Sold), Sales Tax Collection, |
| the web or a MLM? You are now faced with | | | | Marketing Expense and others as required. Each of |
| tracking all your expenses and revenues for your | | | | these Accounts will be a listed as a title across the top |
| business and you certainly don't have the money yet | | | | of each column of your Synoptic Journal. Each row |
| to engage a bookkeeper or accountant. If your | | | | (line item) will be the individual journal transactions |
| business is a sole proprietorship, whether it be a | | | | entered by you. The journal transactions are grouped |
| Canadian Proprietorship or a US-based Proprietorship, | | | | and summarized for each business month; usually, |
| you do not require an accountant to submit your | | | | January through December.So your Synoptic Journal |
| company financials (books) to the IRS (USA) or | | | | would look something like this Sample Synoptic |
| Revenue Canada). Your business revenue and losses | | | | Journal.The column headings might be in this order |
| are reported as part of your annual personal income | | | | (from left to right):DATE | DESCRIPTION | BANK |
| tax. For this small business start-up, you won't need to | | | | DEPOSITS | BANK WITHDRAWALS | SALES |
| buy fancy accounting software, like Quick Books or | | | | REVENUE | COGS | SALES TAX COLLECTED & |
| AccPac to track your business. Only as part of | | | | REMITTED | OFFICE SUPPLIES EXPENSE | |
| incorporating Bizfare Enterprise Inc in 2005 was it a | | | | EXPENSE #2 | EXPENSE #3 | ETC TIP #2: Unless |
| requirement to engage an accountant. My | | | | your business is Incorporated or an LLC, you don't |
| accountant did insist on using Quick Books software | | | | need to go through the expense of opening a business |
| for my business accounting. Up until then using a simple | | | | account with your bank. Usually Business accounts |
| spreadsheet template served my business accounting | | | | charge a higher monthly fee, charge for printing checks |
| needs for over ten years. This simple spreadsheet | | | | (cheques) and don't offer any interest on your monthly |
| accounting stood the test of multiple audits by | | | | account balance. Instead, open a separate personal |
| Revenue Canada (CRA and Revenue Canada Goods | | | | bank account (maybe savings). This will show the |
| and Services Tax. Both the hardcopy columnar pad | | | | 'taxman' that you are keeping the business separate |
| and an electronic spreadsheet version of my financial | | | | from your personal banking. Remember you are a sole |
| books were accepted by Revenue Canada. (BTW | | | | proprietor and all your business income (and losses) |
| the audits disclosed more ways for me to claim | | | | are to be applied directly to your personal income tax |
| back additional taxes for the previous three years! | | | | submission ( a s per IRS and CRA).To save you time |
| Now that's my type of audit!)In your new start-up | | | | and make is very simple, I have already created a |
| business venture, you likely will generate somewhere | | | | simple spreadsheet Synoptic Journal template that |
| between 10 to 30 accounting transactions per month. | | | | performs all the calculations for each month and rolls |
| These transactions would be items like Expense, | | | | up the 12 business months so it can easily be included |
| Revenue (sales), Liability (Loan) type transactions | | | | in your annual personal income tax preparation. This |
| and Sales Tax (Federal + State/Provincial) Collection | | | | Synoptic Journal template has Debit/Credit checks |
| Deductions. These transactions are further broken | | | | and balances, tracks sales taxes, mileage and totals |
| down into various Business Accounts. All the Accounts | | | | each account for your entire fiscal year. If you want |
| you set up for your business is called a Chart of | | | | this FREE Bookkeeping template, you can get it at |
| Accounts. Recording your business financial | | | | With a few key strokes, which will help identify |
| transactions (Journal Entries) can be executed with | | | | yourself, I will gladly send you this FREE Synoptic |
| pen and ink on an accounting columnar pad or | | | | Journal Template and also any future Small Business |
| electronically with your computer using a spreadsheet | | | | Tips.TIP #3: One Rule of Accounting is that every time |
| program (MS Excel, Open Office, Star Office). | | | | you record a journal entry (line item which applies the |
| Whether you employ electronic or hardcopy media, | | | | transaction against the appropriate business accounts) |
| you need to develop a simple Journal template to | | | | the Debits and Credits MUST REMAIN EQUAL at |
| create your Business Synoptic Journal. This Synoptic | | | | ALL Times. This Debit Equals Credit calculator is built |
| Journal format has the advantage of allowing you a | | | | into this FREE Bookkeeping Template. When you have |
| complete view of all your individual journal entry | | | | completed entering a line item (journal transaction), |
| transactions against all your various Business | | | | check to ensure that the amount the the Debit cell |
| Accounts. Creating this Synoptic Journal is easier to do | | | | equals the amount in the Credit cell. If they are not |
| than you think and requires no prior accounting or | | | | equal, you have not entered the amounts properly in |
| bookkeeping knowledge. TIP #1: You could further | | | | your journal transaction. Correct the problem before |
| reduce the accounting line items (Journal Entries) by | | | | entering your next journal entry.You are now equipped |
| consolidating like items such as 'all the Sales for the | | | | to capture your business financial books with some |
| month' and 'all parking receipts for the month' into one | | | | simple accounting software. Happy bookkeeping! And |
| totaled line item for the month.Where do you start to | | | | Happy Selling! |