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