Even if the business is small, it is necessary to control in accounting. We explain the basics to have to update all your business accounts.
To successfully carry out accounting small business you need to know these fundamental concepts.
Accounting for a Small Business
When we undertake a small commercial project, and we set up a business or small business, you must learn to manage the accounts. This will not only allow us to have more and better control of almost all accounting aspects but also helps to save and prevent events before the IRS tax inspections.
Why keeping the accounts of a business?
Although the laws of each country vary, virtually all share the tax assessments. So we need a bookkeeping business, it allows us to trace and verify all purchases and sales made in an orderly and legal manner, and also project future business growth and its categorization from the income and investment.
This is of vital importance, since in most countries the shops are located in certain categories from the category and income level. This determines the relevant taxes and exemptions and tax benefits. Of course, provided that the corporation or business is complying with the law. And how it is shown or verify this? From your accounting system.
What accounting system for small business use
Every company or business determines its own accounting system, based on their availability or practicality. While the ideal is to let the accounts left by a professional issue, we take ourselves.
Some people prefer to do it on paper, notebooks and folders, and those who choose to use a computer system with specially designed software (custom or standard). In the first case it is convenient to carry separate notebooks for different areas, or categorize content in colored folders, well marked. A computer system simplifies the whole procedure; you can find one to suit you with great ease on the Internet, both pay and free.
The basis of the accounting system
Once discharged business, with all its billing list, you can easily keep accounts. First you need to keep track of all sales of the day for the daily income. Then keep track of all expenses, including purchases from suppliers, incomes, consumption and other services; this will go on the part of expenses. At the end of each day you can take stock or each week. Thus, the last business day of the month you can make the overall balance between income and expenses, keeping track of invoices or tickets issued, so you can easily compare them if necessary.
Other details that can take on accounting of your business is the inventory of products and supplies. To do this, you can follow the pattern of income and expenditure of money: you write down the amount paid (bought) for each product and, in the joint column write down the quantity of that product that is being sold (also which is defective). So, at first glance you can know how many units are in each thing. Again: a computer system would facilitate this, and you can use it for little money, even free in some versions, always respecting copyright.
Another report is to analyze the control we are using services such as water bills, light, phone, among others. If staff in charge, even a small business, do not forget to have the forms in order for the payments, like insurance by accident.
Finally, within the accounting of a business, you have to always have money for “petty cash” if we have to buy some emergency or high priority, in addition to check payments to suppliers not handle a lot of cash on the premises.