Tips on Basic Bookkeeping

Do you run your own small business? If you do then chances are, you also do your own bookkeeping. Most small business owners wind up doing everything themselves until they get large enough or make enough money to support a staff to help them out.

Until your business grows, it does not make much sense to hire people to do tasks until you are turning a profit. I’m sure you are already aware of the vital importance of basic bookkeeping. But, like most people, you probably avoid it a lot and it may be a little behind.

Dabbling in bookkeeping and accounting are probably not on the top of your list of things to get done. But before you can afford to hire a professional bookkeeper, you are going to have to learn some of the basics if you want your business to grow. Basic tasks such as paying your bills on time and financial reports all fall under the realm of bookkeeping.

When it comes to the basics of bookkeeping you will find the lingo such as: cash (receipts and disbursements), accounts receivable (money due from customers’), accounts payable (bills to pay), loans payable (bills from items you bought on loan), inventory (products to sell), purchases (goods that you bought), sales (track incoming revenue owners),’ retained earnings (company’s profits that are reinvested into the business), equity (how much each owner puts into the business), and payroll expenses (your employees pay checks).

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