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Basic Bookkeeping for Small Business

Written by: Glenda Lange

Article Overview: 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.

Basic Bookkeeping for Small Business

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.

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.

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Article Tags: accountant, accountants, accounting books, basics of accounting, bookkeeper, bookkeepers, boss, business transactions, financial future, heaps, how to write an invoice, making money, own business, receipt, receipts, second thought, small business owners, stationery store, stationery stores



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