One important aspect of running your own successful company is to make sure your accounting is in good order. If you are working on your own and have no experience in doing this then it can be quite daunting. Here are some basic bookkeeping for new business start ups.
You may feel that the best idea is to enroll on a course to help you learn some basic computer skills using office software. This is worth doing if you really have no clue on how these types of packages work. You may find some good office software for free, but for the best known brand you will need to pay.
Before you start working on computers to sort out your accounting it is worth taking time to learn more traditional methods of bookkeeping. This is when books were used to record all transactions rather than being kept on a PC. Spreadsheets and specialized accounting packages are now more commonly used.
The books are called ledgers and this is where you recorded anything to do with finances. The sales ledger is where everything you sell is recorded, including price, when payment was made and the date. Another ledger is set aside for any purchases which are made through the company.
A cash book is needed to show your bank statements. They will keep a record of when payments cleared into your account, so the dates may not match up with your sales or purchase records. Finally it is a good idea to keep an asset book. This is where you note down any assets which are owned by your company, such as your work premises.
These books are then used to create comprehensive accounts. You can find your profit gain or losses and create a balance sheet as well as a cash flow forecast. These are essential records which need to be kept in a safe place. You will then be able to show your information to the IRS at the end of the tax year.
You may feel that the best idea is to enroll on a course to help you learn some basic computer skills using office software. This is worth doing if you really have no clue on how these types of packages work. You may find some good office software for free, but for the best known brand you will need to pay.
Before you start working on computers to sort out your accounting it is worth taking time to learn more traditional methods of bookkeeping. This is when books were used to record all transactions rather than being kept on a PC. Spreadsheets and specialized accounting packages are now more commonly used.
The books are called ledgers and this is where you recorded anything to do with finances. The sales ledger is where everything you sell is recorded, including price, when payment was made and the date. Another ledger is set aside for any purchases which are made through the company.
A cash book is needed to show your bank statements. They will keep a record of when payments cleared into your account, so the dates may not match up with your sales or purchase records. Finally it is a good idea to keep an asset book. This is where you note down any assets which are owned by your company, such as your work premises.
These books are then used to create comprehensive accounts. You can find your profit gain or losses and create a balance sheet as well as a cash flow forecast. These are essential records which need to be kept in a safe place. You will then be able to show your information to the IRS at the end of the tax year.
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