| These small business bookkeeping tips will help you | | | | recorded on your bank statements are recorded in |
| get your books up to date and keep them that way in | | | | your books, and the balance on your statement is in |
| less time. They'll help you maintain financial control, and | | | | agreement with that in your books. Make sure that you |
| help you manage your working capital more | | | | know the amount of any uncleared and unpresented |
| effectively and securely. | | | | checks (cheques) which will explain any actual |
| | | | difference between the statement and the account on |
| 1. Before you contemplate recording any transactions | | | | your ledger. |
| in your ledgers, organize your paperwork in your files | | | | 7. Likewise, make sure all petty cash is accounted for |
| according to these bookkeeping basics. It will save you | | | | by counting the cash in your cash box and agreeing it |
| time, and time is money. | | | | to your cash book. |
| 2. Work out how much you earn in your business per | | | | 8. Perform routine counts on items you carry in stock, |
| hour. If the answer is more than what it will cost to hire | | | | and ensure that what is recorded in your books |
| a professional bookkeeper, then hire one. If not, then do | | | | agrees with the quantity you have on the shelf. This is |
| the transaction processing yourself. Get a tax | | | | an area where strict control pays dividends as |
| accountant to do your year end filing so you don't | | | | unexplainable differences often occur usually due to |
| have to keep up with arbitrary government rule | | | | sales 'samples', spoilage, quality defects, returns etc. |
| making, and miss out on tax allowances. | | | | This is an important area to get right as any |
| 3. When you've got your paperwork in order then | | | | differences will have to be reflected in the financial |
| consider how you're going to record your transactions. | | | | statements and usually affect the profit line directly. |
| This could be in a traditional hand written ledger, or | | | | 9. Keep a Fixed Assets register. While not a ledger in |
| more likely using software. Understand your | | | | your books as such, a fixed assets register is essential |
| bookkeeping software requirements before you buy | | | | to keep track of essential business equipment. This |
| anything to prevent dissatisfaction. | | | | means the cost, the location the depreciation, the |
| 4. If you don't have much money for investing in | | | | purchase date and the remaining life. The value of |
| financial software, then consider using open source | | | | these assets are carried in your balance sheet. It can |
| accounting software.This can be obtained for little or | | | | be surprising how, as you grow, things you thought you |
| no cost. Click the link above to learn the advantages | | | | had have gone! Especially small high value technology. |
| and disadvantages of using open source. | | | | 10. Follow these small business bookkeeping tips, but |
| 5. After you've decided what you're going to record | | | | don't forget to use the information kept within your |
| your transactions in then follow these basic | | | | books intelligently. Working capital management is how |
| bookkeeping tips to make sure you record your | | | | you manage your daily, weekly, and monthly cash, |
| transactions in the most efficient manner possible. | | | | debtors, supplier payments and inventory/stock control |
| 6. Make sure all cash is accounted for by performing a | | | | to keep you in business, and really make a difference |
| bank reconciliation. Ensure the transactions that are | | | | to the bottom line (the profit line) of your business. |