subject: Book-Keeping: How to do it in your Own Business [print this page] Book-Keeping: How to do it in your Own Business
Are you starting your own business? Do you do it home-based or at a small office? Then, you need to be your own book keeper to keep track of your own business. It might sound as a complicated task, but the truth is it isn't.
Book-keeping is the process of tracking incomes and expenses of your own business and recording it in a tabular sheet. It differs from accounting became it rearranges the values to a more logical manner to se your business growth. That means a book keeper is the source of information and the accountant will interpret it.
"I am a small business owner, I don't need it and it will just consume my time." If that is what you definitely say, then think again. Book-keeping is essential to every business. If you don't do it, you will not see how much money you made from your business in that year. You will not also see in what field these huge expenses and how will you correct it next time. And without a book record, the law will sent you to jail for not doing it in your business. The government might think you are escaping from the taxes. So if you have time, do it now.
So, how will you do it? First you must have a ledger book at your side, divide the pages in half and you have a section of Profits in one part, and Expenses to the next. Get every receipt that you have, whether it is the total sum of the sold products or the expenses from your coffee and other purchases. Break the pages into columns that you usually get cash or expense; like the lighting, food products, etc. If you are used to record every income and receipts of payments in your house, then you won't get confused. With some practice, you will get it right.
So, better be your own book keeper. It will lessen the risk of failure to your business. And maybe in the future, you might even extend your business to the other level just because of your hard work and a notebook.
