How to Go About Basic Bookkeeping

If you have your own small business then chances are, you are used to doing everything yourself. Until your business grows, it does not make much sense to hire people to do tasks until you are turning a profit. Since you are a business owner, you are already aware of the vital importance of basic bookkeeping. But, like most people, you avoid anything that deals with paper work, paying bills and accounting. You probably have some great ideas of where you want your business to go however, dabbling in bookkeeping and accounting are not your things. But before you can afford to hire a professional bookkeeper, you are going to have to learn some of the basics if you want your business to thrive. Basic tasks such as paying your bills on time and financial reports all fall under the realm of bookkeeping. Along with the title comes some basic bookkeeping lingo that you should be aware of as a business professional. When it comes to the basics of bookkeeping you will find the terms: accounts receivable (money due from customers), cash (receipts and disbursements), accounts payable (bills to pay), inventory (products to sell), loans payable (bills from items you bought on loan), purchases (goods that you bought), sales (track incoming revenue owners’ equity (how much each owner puts into the business), retained earnings (company’s profits that are reinvested into the business), and ), payroll expenses (your employees pay checks).

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