Basics of bookkeeping that EVERY business owner MUST know!

Good recordkeeping = Good Business

Keep a good, up-to-date record of all your sales and expenses, and maintain all invoices and receipts for at least 6 years

Start from day one! It is SO much easier that way. It will save you time and a headache in the long run!

Understanding Your Sales and Revenues

Retail Sales

  • You sell items or inventory, and receive payment right away (in most cases)
  • Reconcile cash/cheques at end of day
  • Make deposits to your bank account
  • Record in books

Service Business

  • You perform a service, and invoice your client right away or at a later date
  • Send invoice
  • Receive payment
  • Make deposits to your bank account
  • Record in books

Understanding Your Expenses

Cash/Direct Purchases

  • You make a purchase and pay right away
  • Keep receipts and invoices to support your expenses
  • Record expenses in your books

Billed or Invoiced to pay later (Accounts Payables)

  • You receive goods or services, but only need to pay at a later date
  • Receive bills and record them in your books
  • Pay your bills using your business bank account

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