For more than a few people, one of the most exhilarating moments in their professional career is when they open up their own business. Nowadays, that can mean a storefront or a website. Regardless of the type of business, sometimes people get swept up in the excitement of their opening and let some operating details fall through the cracks. With that in mind, let’s take a look at basic bookkeeping for new business start ups.
Before embarking on any adventure, you probably do your due diligence. For example, if you’re planning to go backpacking you would want to know what the weather forecast is, what equipment to bring along, and what maps are available. So it is with running a company. You will want to have the tools to monitor your company’s financial health. Maintaining bookkeeping journals can go a long way to achieve this.
A check register is the best way to record all checks you write. In the register you can look at the entire log. Or you can go back to individual checks and see when it was written, its amount and where it went.
You can keep track of all your transactions with a sales journal. You are able to gather information concerning any and all invoices. You also will be able to determine whether specific invoices are related to labor cost, goods or both.
The next journal is for cash receipts. This records all money taken in and includes info on where it came from, when and how much. The counterpart to the cash receipts journal is the voucher journal. Your bills are logged here. Due dates, amounts and services received are all kept track of. Then you have a general journal to log any changes made in the others.
With today’s affordable technology you can keep your books on a computer. Additionally there is myriad bookkeeping software available. Regardless of what method you use, knowing where your business stands at all times will prove invaluable.
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