Simple Bookkeeping for Home-based Businesses !

Bookkeeping can be somebody's nightmare. People who are not
good at numbers do not like to do bookkeeping. These people
rely on others to do their bookkeeping for them. But that's
for a fee of course.

In starting or managing a home business, bookkeeping is one
important thing that you should not forget about.
Bookkeeping, when you really think about it, is very simple.
There's nothing more to it than recording your daily
financial activities, like the money you earned and the
money you spent. It is similar to balancing a checkbook.

If you maintain a good bookkeeping records of your business,
you can accurately monitor your income against your
expenses. You can see outright if you are making some profit
or not. Here are some easy steps to handle the bookkeeping
of your business in no time.

1. Open a business checking account. Go to your local bank
and open an account under your business name. Sign the
necessary papers and get the account registration card
together with your account information. Get your imprinted
checks as well.

2. Get an columnar notebook or a simple notebook. Start
jotting down your daily income and expenses. Start each
summary with the current date. It would be best if you start
from the day you first opened for business.

3. Make two columns, one for income an one for expenses.
Then proceed in writing down your income for the day, and
your expenses on the other side. Tally everything at the end
of the list. You can also put there the difference of the
two, and label it deposit, or however you intend to save the
money.

4. Accurately maintain a daily, monthly, and yearly log.
Just continue compiling these information. At the end of the
month, summarize all your earnings. Do the same at the end
of the year. This is going to be a good basis for inventory
too. And also for tax purposes.

That's it! That's all it takes to do simple bookkeeping.
Isn't it similar in writing a personal diary? Only on this
one, it's all about money. It doesn't take to be a math
wizard or an accounting major to do these simple steps. You
can also read more on some bookkeeping materials or enlist
in a bookkeeping correspondence course. Bookkeeping can be
very simple. You just need to get the hang of it.


About The Author: Fitzgerald Elliott.
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