Establishing a reliable bookkeeping regime doesn’t need to be cause for despair, however. You’ve got this far in launching your idea into a fully-fledged business, so bookkeeping should be a piece of cake in comparison. Or at least, it can be if you follow the steps set out below on how to make sure your bookkeeping is up to scratch, organized and – more importantly – error free.Choose a bookkeeping method that best suits your needs.
Organization is the number one trait required of any decent bookkeeper, and this comes in the form of a sensible bookkeeping system. You have several options, ranging from simple do-it-yourself packages to more detailed and involved software that does much of the work for you. Possibilities include:- Excel spreadsheets
- Cloud-based software, such as Wave or Kashoo
- Outsourcing the work remotely to an online provider, such as Bench Accounting
- Hiring a local certified public accountant firm to do your bookkeeping for you
Decide on an accounting method for tracking income and expenses.
Here your options are simpler and constitute either the cash or accrual method. The former credits and debits expenses and revenues at the time of receipt or payment, whereas the latter does this at the time of the transaction itself. In fact, since businesses must use the accrual method if annual revenues amount to at least USD$5 million, as a small business it’s likely you will be using the cash method.
