How To Start Bookkeping Services For Small Business

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Bookkeeping Basics How to do bookkeeping for
small business?
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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.
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What is bookkeeping?
A simple and short answer is bookkeeping is the
process of recording and organizing a businesss
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.
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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 record-keeping 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.
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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.

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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 double-check 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.
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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.
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Thank You
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