Doing Basic Bookkeeping And Accounts For Self Employed Construction Workers Starting Out

A bookkeeping system or accounting system should be a necessity in any successful business

, as is basic bookkeeping and accounts for self employed construction workers. Each transaction must be recorded and documentation to support them should always be kept as evidence. Evidence should always have the transactions done like purchases, sales items and cash. An advantage would be to be greatly organized. You should keep records for several years in a safe place.

It is of utmost importance that sales invoices be properly documented in a designated sales register. In order to prevent overspending, these records should be checked on a regular basis. It also ensures that you get payments on money owed to you, and sales invoices assists you in keeping track of stock on a daily basis.

Small businesses can keep a very basic system. Bigger companies will however require a sales register to keep up with daily sales. A more sophisticated software system covering all accounting aspects will be necessary. An accountant should be employed in order to monitor every transaction with precision. Sales invoices serve to document all transactions between the company and the different customers.

Another prime document would be a purchase invoice. Those would be invoices received from your suppliers. This would not require any specific analysis for the smaller company. However, a good manual system would be necessary to keep proper control for taxation purposes. Larger organizations require a more in-depth system to keep track of all costs and payments. Amounts owed could be tracked within a purchase ledger.

Cash transactions and bank transactions would be the majority of transactions. Receipts would there for be another prime document. This can be bank deposit slips or till slips. This could be recorded separately from the other prime documents in a small business. As proof of all transactions, you should keep this evidence safe. These documents can be a point of reference when you need to refer back to something. When withdrawals are made, the cash receipts should always reconcile with this.

It is essential that bigger companies use codes to identify and record receipts in the sales register or ledger. This ensures that any outstanding payments are there for the viewing. A basic accounting system for making single entries will suffice for smaller companies.

The owner can make entries himself, and at the same time, make sure that every document is correct. All dates of payments and other transactions should be recorded accurately. This system will serve well as accounting and basic bookkeeping for self-employed construction workers.

by: Nathan Madeley

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