There is nothing worse than being inundated with paperwork when you have just opened your new venture. You know that sooner or later you will have to sit down and file invoices, receipts, bank statements and a myriad of other administrative paperwork that is essential. That is why you should know some basic bookkeeping for new business start ups.
One of the key functions of running a profitable business is having good accounting mechanisms. Whether it is a large concern or a small office, you need to keep your daily bookkeeping streamlined so that when it comes to the end of the month and the end of your tax year, then your books are in order and make sense. You will also start to get a more accurate take on your venture as to where your money is being spent the most.
Another reason why it is important to keep books is when you ask the bank for a loan. They will not consider you if you cannot produce a set of books on your company to help them make an assessment whether to take the risk or not. With coherent accounting practices, you stand a better chance of getting that important cash injection.
In this regard, there are some rudimentary guidelines which everyone should follow to make their venture run smoothly:
Try to separate your venture's transactions from your personal ones. In other words, do not use your personal credit card for anything other than private things. You should have a credit card in the company's name to do your transactions through it. By separating your business from your personal account, you get a better picture of how your money is spent and on what. Cash and check deposits should also be done directly into your business account.
Try not to use your personal funds on company expenses if you can help it. If there is no other way, then make sure you reimburse yourself as soon as possible. Treat your accounting with strict rules so that you get used to keeping the two accounts separate. Many people are totally mixed up at month end because they worked from two accounts in stead of keeping them separate.
Reconcile your bank and credit card accounts once a month. This will also give you a better indication of how your funds move in and out of your bank accounts. Track your bills under an expense account. Make sure you keep a note down the expense so you do not have to waste hours on trying to remember what you bought.
Consider buying software such as Basic bookkeeping for new business start ups. It will help you with your administrative duties and keep you focused so you can take on the world.
One of the key functions of running a profitable business is having good accounting mechanisms. Whether it is a large concern or a small office, you need to keep your daily bookkeeping streamlined so that when it comes to the end of the month and the end of your tax year, then your books are in order and make sense. You will also start to get a more accurate take on your venture as to where your money is being spent the most.
Another reason why it is important to keep books is when you ask the bank for a loan. They will not consider you if you cannot produce a set of books on your company to help them make an assessment whether to take the risk or not. With coherent accounting practices, you stand a better chance of getting that important cash injection.
In this regard, there are some rudimentary guidelines which everyone should follow to make their venture run smoothly:
Try to separate your venture's transactions from your personal ones. In other words, do not use your personal credit card for anything other than private things. You should have a credit card in the company's name to do your transactions through it. By separating your business from your personal account, you get a better picture of how your money is spent and on what. Cash and check deposits should also be done directly into your business account.
Try not to use your personal funds on company expenses if you can help it. If there is no other way, then make sure you reimburse yourself as soon as possible. Treat your accounting with strict rules so that you get used to keeping the two accounts separate. Many people are totally mixed up at month end because they worked from two accounts in stead of keeping them separate.
Reconcile your bank and credit card accounts once a month. This will also give you a better indication of how your funds move in and out of your bank accounts. Track your bills under an expense account. Make sure you keep a note down the expense so you do not have to waste hours on trying to remember what you bought.
Consider buying software such as Basic bookkeeping for new business start ups. It will help you with your administrative duties and keep you focused so you can take on the world.
About the Author:
Looking for comprehensive information on basic bookkeeping for new business start ups ? Get the exclusive low down now in our overview of top accountants west london and chartered accountants London .