The Essentials of Bookkeeping for Small Business

1
The Essentials of Bookkeeping for Small Business
2
The Essentials of Bookkeeping for Small Business
1. How do you know if you need bookkeeping for
small business? The answer depends on the type of
business you own and your unique circumstances,
but here are some questions to ask yourself to
help figure it out.
3
2. You dont have to find the answers to all of
these questions just the ones that make the most
sense in your situation. If you cant come up
with an answer right away, thats ok, too!
3. Just keep thinking about it and try to come up
with an answer before you finish reading this
article.
4
What Is Bookkeeping ?
1. Simply put, bookkeeping is a record of
financial transactions. Its often one-part
documentation and one-part analysis if youre
looking to open or manage a small business,
bookkeeping should be your first priority.
5
2. Before even choosing your business name or
creating a logo, you should learn what makes good
bookkeeping practices (and avoid bad ones), as
well as how to implement these practices into
your new business plan.
6
What Does A Bookkeeper Do ?
1. The bookkeeper is responsible for posting all
incoming and outgoing money on your small
business financial books.
2. They record each transaction as a debit or
credit and then assign it to an expense, revenue,
asset or liability account.
7
3. They track cash flow, prepare bank
reconciliations and pay bills when they are due.
4. The bookkeeper does all these things and more.
Heres a closer look at exactly what a bookkeeper
does for small businesses today.
8
How To Choose A Great Bookkeeper
1. You've heard it over and over You should hire
a bookkeeper. And while you may be able to do
your own books in a pinch, chances are that
sooner or later, you're going to need help.
2. Finding someone who can handle all aspects of
small business bookkeeping can make all the
difference in your cash flow and time management.
9
Why Keep Records And Books ?
1. The key to financial success is knowing
exactly where your business stands at all times.
This way, youll be able to make smart decisions
about sales growth, employee management and cash
flow.
10
2. This requires tracking income and expenses
meticulously if it seems like a lot of work,
remember that it only takes 10 minutes per day to
record transactions and calculate your financial
health!
11
How To Prevent Errors And Fraud
1. If youre a small business owner, accounting
issues can strike at any time.
2. Accounting errors and fraud arent necessarily
high-profile crimesbut they have serious
implications, particularly if you dont know what
to look out for.
12
3. As an entrepreneur, its your job to ensure
that your financial records are accurate and
protected from malicious activity.
4. Here are some tips for preventing errors and
fraud Your bank statements should be mailed or
delivered to you on a monthly basis avoid
allowing others access to them in person or over
email.
13
5. Consider investing in online banking, which
gives you real-time access to your account data
and can help reduce paper waste.
6. Each month, review all charges made on your
credit card (and debit card) transactions
compare these charges with receipts or
confirmations from vendors/merchants who
processed payments on your behalf.
14
Contact us
Call us 1300 049 534
Website https//reliablebookkeepingservices.com.a
u
Email enquiry_at_reliablebookkeepingservices.com.au