Basics of Bookkeeping for Small Businesses
Running your small business is a big task. Whether you have a big team or you are the sole operator, there are thousands of tasks that must be done to keep your business up & running. Bookkeeping is one of them. Bookkeeping is a task that no business can live without. It’s one of the most important parts of business operations and helps in tracking and maintaining reports of all the financial transactions of a business. The article describes about the basics of bookkeeping and why you should follow them. Expenses and Revenues: It’s essential to know the cash flow (in and out) in your business. This can be performed by monitoring it through proper documentation. All the records should be maintained through journals. It’s a method that tracks all the transactions as credits and debits. Inventory: It is used to maintain all the records to prevent any kind of misplacing and stealing of data. Date of purchase, purchase price, stock numbers, and date of selling, sold