| Bookkeeping is an important function of a business, be | | | | column of business transactions clearly and accurately. |
| it big or very small. Good bookkeeping practices are a | | | | Make it a point to reconcile all your bank and credit |
| must to maintain an accurate set of accounting books. | | | | card accounts on a monthly basis without fail. This |
| This, in turn is necessary for one to help him take vital | | | | practice is a highly recommended one since its |
| business decisions such as raising capital or going for | | | | benefits go beyond the recommended accounting |
| bank loans. Of-course, it is also needed to know how | | | | principles and practices. Whenever your bookkeeper |
| much money a business is making as profit. Getting | | | | or you decide to reconcile the books, you would get a |
| the accounting concepts and practices right for small | | | | clear picture of how the funds moved in and out of |
| businesses is all about doing simple accounting things in | | | | your bank account every time. |
| the best way every time. These practices are easy to | | | | Make it a point to track all the bills under a proper |
| implement; so, many business owners tend to go for | | | | expense account, as far as feasible or possible. |
| the implementation aspect. Some of the relevant things | | | | Always mention in detail the nature of the expenses in |
| that need to be looked into are mentioned. Keep all the | | | | the memo. Accurate covering of the expenses |
| business and personal transactions in a separate book. | | | | incurred can save a lot of money in terms of taxes. |
| Make use of business cards, if possible, in order to | | | | This is due to the fact that many of the expenses |
| segregate business transactions. | | | | may be deductible. Your bookkeepers or CPA may |
| All sales proceeds, deposits and all the initial expenses | | | | not be in a position to get you those benefits if it is not |
| have to be recorded in the business checking account; | | | | entered in the right accounts or at least with enough |
| or else, on a business credit card. Enter in the books | | | | detail to support. Simplicity of business soft wares has |
| even the details of cash-receipts got from customers. | | | | made many small business owners to carry out their |
| It is ideal to store all the cash in a separate drawer and | | | | accounting tasks themselves. This is not always a |
| reconcile the transactions account at least once a | | | | good idea because without a thorough knowledge of |
| month, if not, on a weekly basis. Keep track of the | | | | basic accounting principles, one is liable to make errors, |
| personal funds made use of to pay for the company | | | | for instance, treating a liability as an expense. Many a |
| expenses or vice-versa through a single account. | | | | small business owner enters loan repayments as an |
| Track the reimbursements made to the business | | | | expense without segregating the principal amount from |
| owners also through this particular account. This helps | | | | interest components. Bookkeeping for small businesses |
| one to identify which money was spent by you on the | | | | and enterprises is not very difficult. |