Day To Day Bookkeeping Essentials
If today was your first day of “keeping books” for your little business, you might have questions like where you should start or what would be required.
Get Bookkeeping Software or a Notebook: The crucial thing for your bookkeeping is to have a place where you can record your business money’s actions. It could be designer software or spread-sheeting software like Microsoft Excel or a stuffed bookkeeping notebook or paper.
Open a Bank Account: The next crucial thing is to open at least one limited bank account, to begin with, just for your business money so you can keep it aside from your money.
Set up a Sales Invoice Template: The third crucial thing is to design and develop a sales invoice template so that you can invoice your clients – however, this may not apply to you if your kind of business does not have to distribute invoices.
Your software will have a basic template ready to be personalized with your shades and logo. You can also use Excel sales invoice templates, find a printable template online, or an invoice book from your regional store.
More on Bank Accounts for Business
All good bookkeepers will advise you to keep your business money and your money far from each other.
If you have not started a bank account just for your business money yet, make it a precedent.
Don’t worry if you have already mixed up your business loans with your money – there are plans to split them out. When it happens to spend money for your company, try to only spend from the company bank account.
If you have to use private money because your business bank is low on funds, give a huge amount over to the business bank account to maintain paying for business loans from the bank account for the business. The transfer can be shown in the books as a Personal Deposit. This makes bookkeeping less difficult.
And if a customer gives you cash, make it a priority to deposit the money to the company bank account as soon as practicable so that you don’t lose the money or the opportunity to spend it and then ignore what you have spent.
Setting up Day to Day Bookkeeping Records
Whether you choose to use software or paper for your day to day accounting, you have to set up the following initially:
When Using Software or a Spreadsheet/Notebook
● Select your financial year-end and business start date
● If you have opening bank balances, understand the software’s directions to enter them because it will help you adjust your bank account with precision.
While Using a Bookkeeping Notebook or Paper
● you need to draw up some columns for your revenue and costs and name them
● if you have any bank type accounts, make one page per bank account
● That’s it!
Why Day to Day Bookkeeping Is Important
Now you may wonder why you have to do this and where all of it is going. One reason is that the government tax agency wants to charge you income tax. They count it on the end of your total income minus your total expenses for the year.
Another idea is that you should know if your business is making or losing money as a great business owner. If it’s losing money, then you can think of ways of improving sales or decreasing expenses.
Envolta is here to help.
An entire team of accountants & bookkeepers, just for you. Envolta strives to build strong long-term relationships with each of its clients, providing services for various bookkeeping industries. They get outcomes from their commitment to reliable customer service. Your time is essential, and their team is always available to take your call so you can move on to your next task.
Envolta knows that working with numbers can be difficult. That’s why they are committed to educating all their customers using terms and language you already understand. Gathering this with their cutting-edge tech, you can bank on feeling empowered and finally be stress-free at tax time – every single year.