Bookkeeping For Small Business OwnersPosted in CategoryGeneral
IIheonu Nkechi Gloria 2 months ago
I know many of us think bookkeeping isn't the most exciting thing ever, but we've got you covered, consider this your bookkeeping 101 class.
Bookkeeping is the process of tracking all of your company's financial transactions, so you can see exactly where your business is spending money, where your revenue is coming from, and which tax-deductible you will be able to claim.
Importance of Bookkeeping
📌 Gives you a clear picture of where your money is going.
📌 Help you track your expenses and know what months are busy or slow.
📌 It helps you plan for the future.
STEPS TO TAKE:
📌 Separate your business expenses from your personal expenses.
📌 Create a budget and track your budget.
📌 Choose between Cash or Accrual Accounting.
Cash basis accounting records revenue when cash is received and expenses recorded when cash is paid out.
Accrual basis accounting only accounts for revenue when it is earned.
📌 Stick with a bookkeeping system; Manual or Online Accounting System