taxreqBasics 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
