Home Business Bookkeeping Made Simple

Home Business Bookkeeping Made Simple
Home Business Bookkeeping can become a nightmare. Whatever
the price individuals who are not adept at numbers don't
like to do bookkeeping. More often than not, these
individuals trust others to do their bookkeeping for them.
But it does come with a fee when hiring some one to handle
bookkeeping duties.

Once you start or begin a home business, bookkeeping
constitutes one of the most important duties that can't be
avoided. Bookkeeping, is really very simple once you think
about it. All you have to do is keep track of your daily
financial activities. It's almost like balancing your check
book, money in and money out.

Two common bookkeeping methods used by businesses are the
single-entry bookkeeping system and the double-entry
bookkeeping system. Single-entry bookkeeping uses only
income and expense accounts recorded primarily in a Revenue
and Expense Journal. Single-entry bookkeeping is adequate
for many small businesses. Double-entry bookkeeping
requires posting (recording) each transaction twice.

The primary bookkeeping record in single-entry bookkeeping
is the Revenue and Expense Journal, which is similar to a
checking account register but allocates the income and
expenses to various income and expense accounts

If you maintain good booking records, then it should be no
trouble to keep accurate financial statements. You'll be
able to see instantly if you are making a profit or taking
a loss. Here are a few effortless steps to help with your
record keeping.

1. Open up a business checking account at your local bank.
Use your business name if you have one. If not use your
name. Order your checks, check card, credit card and any
other related items you may need.

2. Go to your local office supply store and purchase a
business ledger or notebook so you will be able to keep
track of your daily, weekly and monthly activities.

3. Make two columns, one for income an one for expenses.
Then proceed in writing down your earnings for the day, and
your expenses on the other side. Add up everything at the
end of the list. You'll be able to put the difference of
the two, and label or mark it whichever way you choose.

4. Accurately maintain a daily, weekly, monthly and yearly
log. Continue maintaining your book and at the end of each
day, week, month and year summarize you total earnings. At
the end of the year you will need this information when
filing your quarterly or yearly income taxes.

You see! It's not that difficult to keep up with your
simple business bookkeeping it's like keeping a diary
except you are dealing with money. You don't have to be an
accountant or mathematician to do bookkeeping duties, it's
real simple tasks. You can go to your local library and
read some books on bookkeeping if you desire more
information. Home business bookkeeping can be fun once you
get use to it.

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Paul Jesse is an author and webmaster providing free and
low cost opportunities to make money at home. He invites
you to visit his website at http://www.sheamarketing.com