Small Business Bookkeeping
Small business bookkeeping could be considered to be the most common form of
bookkeeping, and as a business certainly the most financially viable option. From a business perspective, there is a wealth of small
businesses who do not have the time to effectively manage their bookkeeping and are looking for the services of a bookkeeping business.
Just like in big companies, small
business bookkeeping involves keeping records of what it sold, bought owed and owned. It is up to the owner to track of the money the business
receives, pays out, and saves.
In small business bookkeeping, it is
important to be aware of some basic bookkeeping principles.
As is the case in large companies,
income acquired from small businesses is still considered taxable income by the IRS. So in small business bookkeeping, the owner must keep
accurate records of the businesses income and expenses.
Another aspect to consider when
performing small business bookkeeping is that tracking and recording financial transactions is relatively simple. In fact, the business owner
does not need to purchase an expensive accounting software package for him to use. Instead, a simple spreadsheet, such as Microsoft Excel,
Lotus or Works, will suffice at least in the early stages of the business.
Spreadsheets such as these are very
simple to use and does not require a lot of knowledge to work with. All that is needed is to put all income in one column and put all expenses
in another column, and then continually update the data as transactions take place.
Even the simplest small business can
have complex bookkeeping requirements. Therefore, it is a good idea for the owner to pay someone to do his bookkeeping for him. Small business
bookkeeping is usually a headache for an owner. Owners have other things to do such as marketing their product and services, increasing sales
or running the operation – they do not need the added pressure of staying on top of the bookkeeping.
Employing someone to monitor the
bookkeeping, will ease a great deal of financial pressure. It is recommended that you employ someone you can trust, and who you would be happy
to reveal the intricacies of your financial transactions to. Many small business owners get their life partner to take care of their
bookkeeping- they may be stay at home mom’s or dad’s and would value the chance to be involved in your business.
Another important thing to keep in mind
in small business bookkeeping is to determine the kind of records the owner needs to keep. It is important to keep track of all the income and
income-related expenses that the company incurs. These expenses include office supplies, postage, phone bills, internet bills, utility bills,
Finally, it would also be advantageous
for the owner and his hired bookkeeper to attend business-related seminars, especially those that discuss on tax, accounting and inventories.
By attending such seminars, this will ensure that your bookkeeping stays in-line with current tax guidelines and you may also be alerted of
new tax loop-holes and ways of managing your bookkeeping more effectively. Small business bookkeeping is a fantastic work from home opportunity, an especially financially viable one at that.