Managing the bookkeeping for your business – it doesn't sound so bad at first, right? But when you dig deep into everything that goes into managing your business finances, it can be daunting. It turns out that bookkeeping is time consuming and complicated! Some have used the term tedious, and this For Dummies article "Basic Bookkeeping for your Small Business" goes as far as to use the term “drudgery” when describing the duties that go into small business bookkeeping.
The For Dummies article gives an overview of bookkeeping with the goal of getting you started.
There are six bullet points in the article:
- Prepare source documents for all transactions, operations, and other events of the business.
- Determine and enter in source documents the financial effects of the transactions and other events of the business.
- Make original entries of financial effects into journals and accounts, with appropriate references to source documents.
- Perform end-of-period procedures.
- Compile the adjusted trial balance.
- Close the books.
When you look at these six bullet points you might think "Hey, that’s not so hard!"
But the truth of it is that bookkeeping is a sensitive task. It can be time consuming, especially if you’re not experienced at it. It needs to be done by someone who is trustworthy, and the actual work needs to be kept in a safe and secure place. Most important of all? The numbers need to add up, especially when tax time comes around!
So what are your options for managing your business finances? You can hire a new, trustworthy, experienced employee to work on your books, or you can outsource the task to a bookkeeping or accounting firm. What you really need is someone who understands your industry, what you do as a company, and the best way to work with you – all important factors to make sure that your books are done correctly. Working with a quality bookkeeping service will help simplify your life and ease the process of running your small business, enabling you to focus on what really matters – making your business successful!