How Do You Keep Books for a Small Business?

Nov 8, 2021

It may look daunting but keeping books for your business is not that difficult when you consider the basic goals of accounting: To keep track of your expenses and collect financial information for tax filing.

This is broken down into three easy-to-understand steps.

  1. Keep the receipts of your business’s sales and purchases. These receipts will contain the amount, the date, and other information necessary to create summaries of your transactions.
  2. Post your receipts into a ledger. This is nothing more than a summary of revenues, expenditures, and whatever else you’re keeping track of.
  3. Create financial reports by combining data from your ledgers. The key reports include—the profit and loss forecast, the balance sheet, and the cash flow analysis. These reports offer greater insights into the financial health of the business.

Once you have created your reports, take a step back and start streamlining systems.

If all of this isn’t as easy for you as it sounds, it might be time to hire a professional for help.  Efficient bookkeeping helps you see a pattern and make the necessary changes in the way that you’ve been operating.

Book a consultation with Buying Time and see how we can help https://buyingtimellc.com/book-consultation/.

V.A. Level 2 / Bookkeeper Tami 

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