If you are self-employed and working to make money, you should know as much about bookkeeping as you can. It will save you money when you are just getting started as you won’t need to hire a bookkeeper. As your business grows, you can hire a bookkeeper to be on your office staff. But you still need to know what is going on with your financial affairs. As you continue to grow eventually you can hire bookkeeping Miami Lakes to handle all business accounting.
What is bookkeeping?
Bookkeeping is the entire method of recording all transactions from your working activities. When bookkeeping, each transaction needs to be identified as to what type it is – an example here is whether it is Income or Expense. All transactions have a financial component so when the amount is known from an invoice or receipt – it is ready to be recorded.
Every transaction needs to be recorded into a system of Accounts using the known amount. Afterward, reports can be run that show the effect of all transactions is having on your business profits. A bookkeeping cycle runs for one financial year made up of 12 months every year. The calendar year is January to December but for tax purposes, you can run your business financial year from April to March.
There are many free bookkeeping courses and often the best way for business owners with a start-up to learn how to start and look after your business accounts. These courses will teach you:
- Bank Reconciliations
- Financial reporting
- Working with suppliers and customers
- Managing cash flow – money coming in and going out
There are twelve tips that relate to matters that affect the business accounts or that a bookkeeper needs to handle. These tips include:
- Bank accounts – what accounts a small business should understand and why
- Business documentation and how it should be maintained
- Recognizing personal vs. business expenses
- Handling cash
- What to look for in bookkeeping software together with other helpful programs
- Business logos and other items needed in setting up your company
- Bookkeeping reports that are needed
- New systems – pushing growth and at what price
- Employing people and what benefits cost
So, if you are just starting your business – learn all you can about these tips, so you will know the financial health of your company.