By Linda St.Cyr
Overview
Bookkeeping for beginners should be as basic and easy as possible. It will be one of the most time consuming endeavors for those who wish to keep track of incoming and outgoing expenses. If it is done on a regular schedule it becomes a part of the business routine and gets easier with each update.
Step 1
Start the bookkeeping process by purchasing both a ledger or notebook and also computer software made for easy bookkeeping. There are benefits to both types of bookkeeping for beginners. A ledger or notebook is a good hard copy of incoming and outgoing business expenses that can be kept track of on a daily basis and you will not have to worry about your ledger crashing. Using computer software like Excel or Quickbooks can keep your expenses on track in a daily, weekly or monthly format. Some versions of these programs have built in computer calculators, which eliminates the need for a manual one.
Step 2
Collect any and all receipts related to the business you are doing the bookkeeping for. Place them in an envelope so they do not get lost. This helps keep accurate records and it can come in handy when tax time comes around. Quite a few business expenses can be used as deductions on your taxes so having evidence like a receipt is good just in case auditing is necessary.
Step 3
List all of your business inventory in the ledger to get your bookkeeping started. Inventory can be anything that your business sells from food to freelance articles. Place the cost of each inventoried item next to it as well as the selling price for the items that have sold. Add the totals of sold items using your manual calculator. This is your total income for the day.
Step 4
Calculate your outgoing expenses the same way you would for keeping track of the inventory sales. List each item that you bought pertaining to the business including the ledger and computer software to do the bookkeeping. Only list the items that you have receipts for. Once the list is made, total the amount spent. Subtract the business expense number from the total income number. Record this number as your profits in the ledger.
Step 5
Enter this information from the ledger into the computer software system. You can do this daily, but that can be tedious since you already have a hard copy. A weekly or monthly computer ledger is the best option. If the totals are different in both places, you may need to look over your books again. The numbers should match up. A computer ledger is useful for keeping organized when it comes to monthly incoming and outgoing expenses instead of having to go through the hard copy ledger to add up every day of the month's earnings.
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