The Need for a Simple Small Business Book Keeping System
The Need for a Simple Small Business Book Keeping System
As a small business entrepreneur, one of your obligations in running your business is to set up your small business book keeping system. It is to your business's best interest to establish a simple book keeping system that you can easily manage and understand. As simple as it may be, your system should be able to let you see how sound is your cash flow and how well your business is doing financially.
The Characteristics Your Book Keeping System Must Have
These are the characteristics of the book keeping system you must strive to establish:
Easy to use
Reliable
Accurate
Can Deliver Prompt Results
Consistent
Safe and Secure
You must also have these basic book keeping journals:
Sales journal
Cash receipts
Check register
Voucher register
General journal
The Benefits You Can Enjoy from a Simple Book Keeping System
Your simple small business book keeping system allows you to enjoy the following benefits:
The use of accurate information to make important decisions in running your business
Reduces the time to complete the book keeping tasks that you can then use for other productive tasks in your business operations
Reduces the cost of maintaining an accurate and reliable record of your financial transactions
Important tool in performing an accurate financial analysis of your business
Generate all the financial information you need to run your business profitably
You will know that you have a simple but effective book keeping system in your business when:
You are able to fully understand and use its capabilities and features easily
The system gives accurate information and figures that you can trust and rely upon to use in making important decisions for your business
The information and figures is presented in format that fits your business well
When you have this kind of small business book keeping system, there shall be no reason your business won't benefit from its use. If you still haven't, then it's about time to check resources online to help you establish this simple book keeping system for your small business.