A Note on Basic Bookkeeping
In Business one of the most disregarded or underused tasks is bookkeeping.
If you look at it sensibly there is nothing to fear, it is simply the method of keeping track of where your money comes from and where it is spent.
Too often, people feel the need to keep books to satisfy the taxman or their accountant.
This misses the fundamental reason for keeping accurate books, YOUR OWN NEEDS.
The records you keep are not to satisfy the authorities at the end of the financial year, they are there to guide you to make reasoned decisions and amend your business plan. To enable you to keep your business on the right track, there is a need to know who owes you money, who you owe money to, if you are making enough profits, or are you making a loss,ect. You just cannot rely on your end of year account to tell you this, by the time time you get your books to the accountant and puts them in order you could well have been trading at a loss for many months. You need and must have day to day financial control of your business and the only person that can give you that is you. unless of course you are in the position of affording a in house accountant.
There are many good and simple inexpensive bookkeeping packages available, however I personally just use a simple spreadsheet
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Comments (5)
David C.6
manager
I use the old sage line 51 it gives me a good picture at any time its very easy to use as well anyone that ignores thier books is either a fool or not paying taxes or telling thier govt they are not working, on the web it is the quickest way to be caught
Sean North12
Business
Thanks David I know that bookkeping is boring however as you say it is one of the most essential components in planning and running your business
David C.6
manager
I quite lucky in away,if you can say that I trained as aBook-kepper after my accident and Became qualified but it was too Boring sitting dooing other peoples accounts,I totally agree with Sean says.You have to be able to see at anytime how your business is doing,even if you are a soletrader and dont have to keep books but basically just have to have all your receipts,many a business has went bust because they didn't know their Financial standing and the bank has pulled the plug.And I am not doin
Sean North12
Business
A simple spreadsheet sytem that you can glance at and fill in daily will give you a clue to where your time and money are best spent for maximum return in your business, Philippe
Philippe Moisan16
Tutorial videos, sci-fi writer
The problem is not fear, Sean, it's boredom, well, it is for me, I know, big, BIG mistake :)