How to Start Accounting for a Small Business?
How to Start Accounting for a Small Business?rn
Accurate accounting is a cornerstone of success for businesses of all types and in all industries. Although many times it is difficult for us to start uploading bills, picking tickets, managing expenses. It is necessary to spend a few hours a day doing it in order to keep the company's accounting. You must have the supporting document of the invoice along with its record where all the information mentioned will be.rn
Managing your small business finances does not have to be overwhelming. With the right tips and strategies, small businessbookkeepingcan ensure that your accounting transactions are recorded, classified and organized. Good accounting keeps your business together and makes future successes possible. To maintain a healthy business, you must monitor its records regularly. This constant monitoring gives small business owners the opportunity to spot issues and problems, giving them time to fix them before they become insurmountable challenges. Correct accounting measures are crucial to the proper management of business resources and taxes.
What Accounting Books Should You Keep?
First of all, we must know which books are mandatory in the company, and what information is included in each of them.
1. The Income Book
It is where you register the invoices issued in chronological order. Thanks to that book you will know how your billing is going on a monthly, quarterly and / or annual basis. Remember that the Treasury requires that the invoices be numbered and does not allow duplicates or jumps. Another fundamental aspect to keep basic accounting well is the control of expenses, for which you will need three different books.
2. Book of Invoices Received
It is where you reflect all the invoices that your suppliers make to you each time you receive a product or service.
3. Investment Property Registry Book
In this book you must write down the goods you acquire during the activity, which are not consumed throughout an exercise and whose cost exceeds 300 euros.
4. Expenses Record Book
It is where you reflect the payment vouchers or bank receipts that demonstrate the disbursements made. You can include the self-employed fee you pay monthly to Social Security or fuel expenses, but since it allows you to deduct VAT, those expenses must be directly related to your economic activity.
Tips to keep accounts in a store:
1. Computerize your accounting
With an online billing program. Stopping using the traditional paper and pen method, and moving to cloud software will save you time, money and mistakes. In order to keep your own accounting, you only have to keep your accounts up to date, and the tool will do the rest.
2. Check the different minutes, accounts and balances
In this way we will have the certainty that the collections and payments, as well as the supporting documents, are not wrong or duplicated.
3. Outsource your accounting needs
Outsourcing has become a popular option for small business owners as it is cost effective and accurate. Small business accounting tasks can take an untrained employee an entire week to complete, while a trained accounting professional could complete records and organization in just a few hours. Some of the common responsibilities that a professional bookkeeper can handle include:
Track daily transactions
Preparation of sales invoices
Management of the accounts receivable ledger
Manage the accounts payable ledger
Preparation of monthly reports
Enter transactions into a cash book