Taking care of small business may not be as daunting as some people will make you believe. It is essential that you maintain and keep basic records to help you keep track of your business. Maintaining records will help you know your sales, profits, and loss if any. Managing your cash flow will be impossible without small business bookkeeping.
The following ideas could come in handy for your small business bookkeeping:
* Maintain a Record of All Your Expenses
You began your business because you had a plan in mind. This plan would ideally be documented in the form of your business’ business plan to help you focus and maintain clarity in your dealings. Your expenses include the actual product purchases, transportation costs and coffees or teas should it be part of the deal in meeting some clients. Maintain a record of the mileage if you used your car. File all your purchase and enter the record in your ledger. You need to maintain and expenses ledger or account. Keep a daily record of your expenses because delay could make you forget.
* Maintain a Record of Your Debtors
You will need to know your sells in cash and those you sold on credit. You will need to keep a clear record of your debtors. This will involve maintaining a record of the name, date, item purchased, the cost of the item and the intended date of payment. You will then have to synchronize your reminders with such information. Debtors’ information should be captured on daily basis in your daily business transaction record book and then transferred to the debtors’ record book or file. All paid dates should be so indicated while unpaid ones followed up when it is due.
Failure to record debts may lead to your delaying to send debt payment vouchers or bills which will lead to your operating at a loss. The worst bit about not maintaining and updating your debtors’ record is forgetting altogether to collect your debts and operating at total loss in consequence.
* Accounts Payable
You will definitely have to keep track of debts you owe for instance the business loan and products you took on credit including dates when the dates are due. This should take into consideration taxes and any other business operating expenditures such as licenses or renewals. Failure to keep track or such documentation may lead to business closure and legal issues which you may wish to avoid if you want your business to thrive.
* Maintain Proper Filing
A filing system will help make things easy to follow up and keep track of your business. Your business records will tell everything you or anyone needs to know about your business. If your business records are strewn all over, it becomes difficult to tell where anything is and you may delay or not follow up or follow through with debts owed which is detrimental to your business. Maintain a filing system for your revenues and expenses, receivables, inventory, accounts payable and cash expenditures.