How To Start Bookkeping Services For Small Business

Bookkeeping Basics: How to do bookkeeping for small business?

Introduction Often small businesses used to face accounting problems due to several reasons.

One of the primary reasons is ill-maintained accounts. In most of the cases, small businesses used face lack of men power thus no one remained assigned for maintaining the bookkeeping. It is important to give focus on Bookkeeping. The current presentation will teach some important tips of bookkeeping for running your small business.

What is bookkeeping?

A simple and short answer is bookkeeping is the process of recording and organizing a business’s financial transactions. Yes, it includes the records of all the incoming and outgoing transactions. Generally, the person is responsible for maintaining it is called bookkeeper. In other words, one can say that both the bookkeeping and accounting are the same, where bookkeeping lays the foundation of accounting. Nearly 1.7 million US citizens are employed with Bookkeeping service jobs.

Why is small-business bookkeeping important?

Every business wants to run for a long time.

Bookkeeping helps the businesses to achieve their long-running goal. To do so, one needs to get a clear picture of all the financial incomings and outgoings. In case of having any dispute in business, a clean recordkeeping system can help you to get out of the system quickly. Therefore, you can easily avoid any type of tax penalties. From managing payroll to invoices, bookkeeping can help you in all aspects of the business.

Set Up And Manage Accounts For a smooth-running business, having a bookkeeping account is necessary. It is not a bank account, but a bookkeeping account that is there to keep all the records properly. There are mostly five types of accounts you will find. These are as follows: • Assets • Liabilities • Revenues or income • Expenses or expenditures • Equity It is important to set up all these accounts by which you can record all the transaction under the different accounts’ category.

Record every financial transaction Every single record should be recorded under the respective category. Most of the bookkeeping services used to use double-entry accounting system. It is a system where you need to enter the same amount of transaction in two different categories. It ensures a doublecheck and the chance of error usually get diminishes.

In the double-entry accounting system, two different entries for each transaction, such as a debit and a credit are recorded.

Balance and close the books The final step of bookkeeping is to balance and close the book. A bookkeeper usually used to tally both the debit and credit side to ensure that there are no issues in the accounts. Once the total is managed, you can simply close the book by seeing it balanced.

Generally, it is done at the end of the quarter or year.

Thank You

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