Simple Tips On Basic Bookkeeping For New Business Start Ups
When you start your own company then it is important not to neglect your accounting. You will need to keep excellent records for tax purposes. You may find that you are not in the position to hire anyone to help you with this. Here is a guide to basic bookkeeping for new business start ups.
You can find software to help run your accounting needs for free, although for the best it is worth buying a complete office pack. If you have very little computer knowledge then it is worth joining a local college or hiring a computer to help you gain confidence and understanding.
Before you start working on computers to sort out your accounting it is worth taking time to learn more traditional methods of bookkeeping. This is when books were used to record all transactions rather than being kept on a PC. Spreadsheets and specialized accounting packages are now more commonly used.
You will need a sales ledger. This can be done in written form or recorded on a simple spread sheet. You will keep a record of every single sale you make, and when payment was made. Secondly the purchase ledger is used to list all the purchases that you make for the company.
A third book is the cash book, and this is basically recording everything on your bank statements. The only differences here to the sales and purchase ledgers will be the dates. This is because money often clears later than the day it was paid in. An asset book records any assets which your company owns.
All this information is then used to create cash flows and balance sheets. You can work out your gains and any loses that you make. You will then need to show your findings for tax purposes.
You can find software to help run your accounting needs for free, although for the best it is worth buying a complete office pack. If you have very little computer knowledge then it is worth joining a local college or hiring a computer to help you gain confidence and understanding.
Before you start working on computers to sort out your accounting it is worth taking time to learn more traditional methods of bookkeeping. This is when books were used to record all transactions rather than being kept on a PC. Spreadsheets and specialized accounting packages are now more commonly used.
You will need a sales ledger. This can be done in written form or recorded on a simple spread sheet. You will keep a record of every single sale you make, and when payment was made. Secondly the purchase ledger is used to list all the purchases that you make for the company.
A third book is the cash book, and this is basically recording everything on your bank statements. The only differences here to the sales and purchase ledgers will be the dates. This is because money often clears later than the day it was paid in. An asset book records any assets which your company owns.
All this information is then used to create cash flows and balance sheets. You can work out your gains and any loses that you make. You will then need to show your findings for tax purposes.
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