Bookkeeping for small business is the topic today will see in our blog. Book-keeping means basic work how to keep a record (financial or not) of business transactions. The nature of this task is often regular and clerical in nature. But in business purview it is important to note that only transactions which are related to business which can be expressed in terms of money are recorded. The activities of book-keeping for small business includes recording in the journal, posting to the ledger and balancing of accounts.
What are the types of system used in Bookkeeping Services?
Bookkeeping service is very easier work by which there were two bookkeeping systems used by businesses.
System of Bookkeeping
• Single-entry bookkeeping system, and
• Double-entry bookkeeping system.
Single-entry bookkeeping uses only income and expense accounts, recorded primarily in a revenue and expense journal. Single-entry bookkeeping is adequate for many small businesses entity. Double-entry bookkeeping requires posting (recording) each transaction twice, using debits and credits.
Book keeper –Is Bookkeeping services fees?
Bookkeeping for small business is performed by bookkeeper. A book-keeper, also called as an accounting clerk or accounting assistant, is a person who records the day-to-day financial transactions of a small organization.
Bookkeeping for small business is handling by a bookkeeper is usually responsible for recording the Daybooks transactions.
What are the Types of books used in bookkeeping for small business?
Bookkeeping for small business is important to record financial events.
The books are called as Daybooks. It include –
- Purchase Book,
- Sales Book,
- Purchase and Sales return book,
- Cash book,
- Income and Expense.
- Asset register
The bookkeeper functions and duties are very important and responsible for bookkeeping for small business. To ensuring all transactions are recorded correctly in the daybook, supplier’s ledger, customer ledger, and general ledger. The bookkeeper verifies and finalizes ledger books and summaries the books to the trial balance to confirm arithmetically tallied.
An accountant may prepare the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper. Basically Free Small Business Bookkeeping Software used to made this work very easy!
Objective of Small Business Bookkeeping
The following are objectives of small business bookkeeping software.
- Keep permanent record of all the business transactions.
- Keep records of income and expenses in such a way that the net profit or net loss may be calculated.
- To keep records of assets and liabilities in such a way that the financial position of the business may be ascertained.
- It helps to control on expenses with a view to minimize the same in order to maximise profit.
- To have important information for legal and tax purposes.
Advantage of Bookkeeping for small business?
Bookkeeping services small business has depicts to owner the real position of business. It will not too late to establish efficient bookkeeping systems for small business and by engaging a good bookkeeper, business owners can be at ease with the knowledge that lead to –
- Books are on time and up to date to avoid penalties and fines,
- Written data are accurate and up to date for compliance,
- It is informed on the status of your business via critical reports,
- They have well organized systems,
- It helps to them plan for the future business,
- It covers the good time and energy to focus their attention towards growing their business.
Small bookkeeping business enables the proprietor to make an periodic analysis of various aspects of the business such as purchases, sales, expenditures and incomes. In view of above analysis, it will be possible to focus his attention on what action should be taken and what should not be done to increase his business profit earning capacity.
Originally posted 2014-09-13 06:10:19.