In Business Since 2001 We accept Paypal
Home Article Directory
More from Bill Platt
"Bill Platt for Book Authors" Youtube Channel
Training for Book Authors
Other Resources for Book Authors & Publishers
FictionPlots.com (350+ Plots & counting)
Please Support Our Advertisers

 
D9 Hosting


The Basics of Business Record Keeping

Copyright (c) 2005-2020

As a business owner, you may rely on an outside accountant to do your taxes and prepare financial statements. However, itís best that you or someone in your organization take on the responsibility of keeping an accurate set of financial records.

Keeping good records yourself, no matter how unpleasant it may seem, will minimize the costs of paying an accountant and allow you more control of your financial information and operations. Maintaining good records can also help you avoid headaches at tax time by keeping track of your receipts and other records throughout the year. This can help you remember the various transactions you made during the year so you can properly document and maximize your tax deductions.

Normally, tax records should be kept for three years, but some documents - records relating to a home purchase or sale, stock transactions, IRA and business or rental property - should be kept longer.

Good record keeping not only enables the IRS to evaluate your business activity through original and supporting documents, but it also gives you the information you need to properly manage and grow your business.

You can keep track of your business transactions by writing them down, usually in books such as journals or ledgers or by typing them into a computer software program. Itís best to choose a system thatís simple, yet can be changed to meet your needs in the future. An accounting system should show your income and expenses and can be easily understood, especially by you. If you have more than one business, itís best to keep completely separate books for each type of business activity.

The two basic types of bookkeeping methods are single entry and double-entry systems. Whether you choose to keep a written ledger or use computer software, record only the information that needs to be documented.


Single-Entry Bookkeeping

Single-entry bookkeeping uses a cash receipts journal, a cash disbursements journal and also the use of a checkbook. All business transactions are recorded in one of these journals. It is a practical bookkeeping system for small businesses that are just starting.

The cash receipts journal should contain a record of all the money that you receive. It should contain a column for items such as date, amount, and source of payment, the reason for the payment or anything that is of importance to your bookkeeping and of relevance.

Document the money that your small business spends in a cash disbursements journal. It should have columns for the various expenditures that your small business may have with a line for each expenditure, including description of expense, date, payee, check number and total amount.


Double-Entry Bookkeeping

As your business grows, you may need to adopt a double-entry bookkeeping system. This system provides more information to paint a more complete picture of your business at any particular point in time. This information may include available cash on hand, accounts payable, utilities, loans, etc.

Your small business should use a double-entry bookkeeping system if has significant accounts receivable, accounts payable, equipment that depreciates or inventory. If your business will meet any of these, you should select a double-entry system from the start. Youíll use journals and ledgers to record information that reflect your business transactions.

Each transaction will be recorded twice, meaning the system will balance itself out. For example, if you make a loan payment, you will decrease the cash amount in your cash account and increase the exact amount in the expense account.


What Type of Records To Keep

The type of business you operate generally affects the type of records you need to keep for federal tax purposes. Youíll need supporting documents to capture important details, such as your receipts, purchases, expenses, assets.

Here are some other basic record keeping tips to keep in mind:

∑ Daily business records are the best ∑ Identify source of receipts ∑ Record expenses when they occur ∑ Keep complete records on all assets

Remember, good record keeping is essential to the financial survival of your business. So take the time to keep good records, so you can run your business successfully ó instead of it running you.


About The Author: Shop Amazon - Top Gift Ideas
Copyright 2005 Kate Smalley, Connecticut Secretary Freelance Secretarial and Transcription Services http://www.connecticutsecretary.com mailto:kms@connecticutsecretary.com

VOTE ON THIS ARTICLE
Needs Work >> 0 - 1 - 2 - 3 - 4 - 5 << Excellent Article

Tell our authors what you think about their article.



Top-Level Category: Articles

10 Most Recent Articles Written by Kate Smalley

The Importance Of Effective Follow-up
Written by: Kate Smalley | Distributed: 2007-01-15 | Word Count: 493 | Page Views: 13606 | Votes: 22 | Rating: 2.55
Marketing experts say that following up with clients is crucial to successful selling because most prospects do not buy the first time, according to Aweber, a leading autoresponder company. People must encounter a marketing message multiple times before making a purchasing decision.

Are you Master of your Own Domain?
Written by: Kate Smalley | Distributed: 2006-12-07 | Word Count: 489 | Page Views: 3017 | Votes: 9 | Rating: 1.78
Who owns your domain name? Oftentimes customers will approach me after they have already chosen a domain name. What I investigate first is who actually owns that domain name. I no longer ask the customer directly, because 99.9% of the time the response is always "I do" when in fact many of them unwittingly do not.

Considering the Importance of Corporate Culture
Written by: Kate Smalley | Distributed: 2006-11-07 | Word Count: 465 | Page Views: 6386 | Votes: 14 | Rating: 2.29
When it comes to sizing up job candidates, cultural fit is just as important to consider as qualifications.

The Secret To Making Successful Business Connections
Written by: Kate Smalley | Distributed: 2006-10-11 | Word Count: 672 | Page Views: 4364 | Votes: 8 | Rating: 3.13
If you have a hard time making successful business connections, don't despair. Anyone can be good at meeting people-if they use the right technique. The whole secret to making a positive connection is knowing how to attract people and inspire them to want to give you a chance.

Web Content Is Vital To Having an Effective Web Site
Written by: Kate Smalley | Distributed: 2006-09-13 | Word Count: 603 | Page Views: 2578 | Votes: 9 | Rating: 2.33
An appealing design will pull people into your web site, but it's the content that will make them stick and become buyers. In other words: Pictures tell, but words sell. That's why your content is one of the most important elements of your web site.

Benefits of Working from Home
Written by: Kate Smalley | Distributed: 2006-07-06 | Word Count: 427 | Page Views: 3592 | Votes: 11 | Rating: 2.45
If you've ever dreamed of working from home in shorts and a T-shirt, you're not alone. There are more than 50 million Americans working at least part-time from residences, enjoying convenience, tax deductions and other valuable benefits. But not every business is suited to operate at home, experts say.

The Selling Power of Customer Testimonials
Written by: Kate Smalley | Distributed: 2006-06-20 | Word Count: 512 | Page Views: 3447 | Votes: 11 | Rating: 1.82
Customer testimonials can provide a positive and compelling endorsement of your products and services. They can add power to your claims about your product because they come from an unpaid, unbiased source: a customer. And they're a key strategy to building consumer confidence and sales.

Hiring the Right Candidate for the Job and Your Company
Written by: Kate Smalley | Distributed: 2006-05-07 | Word Count: 0 | Page Views: 1538 | Votes: 2 | Rating: 0.50
Increasingly, companies are evaluating job candidates on how well they fit their corporate culture - not just the job. It's an important consideration, as shrinking budgets and economic uncertainty put a squeeze on corporate environments and demand smarter hiring practices.

Being Self-Employed Brings You a Whole New Level of Stress Management
Written by: Kate Smalley | Distributed: 2006-05-07 | Word Count: 0 | Page Views: 1493 | Votes: 2 | Rating: 0.00
Being self-employed, or freelancing is a truly unique environment in which to work. Basically, you wake up every morning and *reinvent the wheel.* That means that you begin every day knowing that you'll be required to provide your customers with something they feel that they can't live without. That's not an easy thing for your stress level to handle.

10 Key Strategies for Maintaining a Positive Attitude at Work and Home
Written by: Kate Smalley | Distributed: 2006-05-05 | Word Count: 0 | Page Views: 2898 | Votes: 2 | Rating: 0.50
Having a positive attitude is an important component of business productivity. When we view ourselves positively, we accept who we are and enable ourselves to soar to the greatest heights. Here are 10 essential strategies for maintaining a positive attitude at work and home.

All of Author's Articles on this site:

Most Recent "" Articles

Ann Arbor, MI Offers A Lot Of Year-Around Family Fun
Written by: Jeb Maxwell | Distributed: 2010-01-20 | Word Count: 595 | Page Views: 3551 | Votes: 8 | Rating: 1.25
Ann Arbor, Michigan is the home of the University of Michigan, a leading institution of higher education. Ann Arbor is a wonderful place to visit. The University is co-mingled with the city and greatly expands the cultural places and events available in the area.

Flowers Are The Perfect Gift For Father's Day
Written by: Wesley Berry, AAF | Distributed: 2008-02-20 | Word Count: 486 | Page Views: 4981 | Votes: 11 | Rating: 2.09
Dads everywhere have Sonora Smart Dodd to thank for getting Father's Day started. In 1909, Sonora sat in a church in Spokane, Washington listening to a sermon expounding on the virtues of motherhood. But, as she sat there, she thought about how special her own father was since it was he who raised her after the death of her mother.

Finding the Adventure in Travel Again
Written by: Helen Bergstein | Distributed: 2006-05-11 | Word Count: 718 | Page Views: 3662 | Votes: 14 | Rating: 2.64
If you want to experience adventure at every level of your next trip, you need to go beyond the usual resorts and places to stay. If you're like most travelers, personal safety remains a priority, especially in today's world. A growing number of savvy travelers have found the perfect balance between adventure and comfort.

7 Tips to Hiring a Good DJ for your Party
Written by: Kamau Austin | Distributed: 2006-05-11 | Word Count: 563 | Page Views: 4591 | Votes: 11 | Rating: 1.36
If you want to have a party that everyone will be talking about for days and years later, hire a good DJ to run your music and light show. Hiring a DJ can actually be fun. Just follow these simple tips, and you are sure to have a fabulous DJ for your party.

Building your Credit to get a Mortgage
Written by: Kamau Austin | Distributed: 2006-05-11 | Word Count: 840 | Page Views: 4622 | Votes: 11 | Rating: 2.09
You are thinking about purchasing real estate. However, you are not sure if your credit is good enough to get a mortgage. There are things that you can do to build your credit so that it is worthy of any mortgage that may interest you.

1569 Unique Ways To Get A Free Lunch
Written by: Steve Robichaud | Distributed: 2006-05-07 | Word Count: 0 | Page Views: 2745 | Votes: 3 | Rating: 0.33
Everywhere you turn - T.V., Radio, magazines, or the Internet, someone is talking about government grants. What's the real story? Does the government give away real money, to ordinary people, to use for whatever they want? Let's take a closer look:

Don't Wait to Start Your Marketing Strategy
Written by: Jo Fulkerson | Distributed: 2006-05-07 | Word Count: 0 | Page Views: 3056 | Votes: 3 | Rating: 0.33
Your novel is finished, youíve had it edited by a professional Editor, and youíve done the rewrites. What? You havenít had an editor edit your work yet? This is a must. There are many editors advertising in Writerís Digest.

NEVER Reply to an eGroup Post!
Written by: BIG Mike McDaniel | Distributed: 2006-05-07 | Word Count: 0 | Page Views: 4251 | Votes: 3 | Rating: 0.33
eGroups are collections of people subscribed to a common (discussion list) address. When one member sends an eMail message to the eGroup address, it is automatically sent to everyone else on the list. As subscribers open and read their eMail, discussion threads take shape with additional posts and replies. The attraction of eGroups is the ability to join in at your convenience as opposed to the confinement of live chat rooms.

Reasons behind Shoulder Pain
Written by: Jessica Horowitz | Distributed: 2006-05-07 | Word Count: 0 | Page Views: 4126 | Votes: 3 | Rating: 0.33
Pain between the shoulder blades, or any pain for that matter, is your body's way of notifying you that something is amiss. You should never ignore it and hope it will *go away by itself*. There are a multitude of possible causes of pain between the shoulder blades. We'll discuss common ones in this article and start with the most serious conditions first:

Effective Managers Need To Coach
Written by: Wendy Hearn | Distributed: 2006-05-07 | Word Count: 0 | Page Views: 3656 | Votes: 4 | Rating: 0.75
Bearing in mind the fast pace of business today and the need to stay competitive, it's essential that managers should be effective. They need to be especially effective with their people and this requires learning to coach. For most managers, coaching has been added to their role anyway, but the majority haven't received any training in coaching skills.

Most Viewed "" Articles

TAKING RESPONSIBILITY - LIFE'S BIGGEST QUESTION
Written by: Richard Sparky Bryan | Distributed: 2006-05-07 | Word Count: 0 | Page Views: 13041 | Votes: 3 | Rating: 0.33
When did Americans stop taking responsibility for their own actions? My friend agreed that the slide began in the late 1960's with the growth of the drug culture. But he was quick to emphasize that although the sixties began the slide, the real sharp slope did not arrive until the 1990's. Along about 1993, the slide began to sharpen. It was not until early 1998 that the slope became a steep cliff.

High Thread Count Bed Sheets. How Many Threads Does A Bed Sheet Need?
Written by: Liz Beresford | Distributed: 2004-09-14 | Word Count: 0 | Page Views: 5646 | Votes: 3 | Rating: 0.33
High thread count bed sheets, often called percale, are much advertised, but what exactly does 'high thread' count mean? You know that it means quality and comfort, but do you know why? It used to be considered good to have thread count of 180-200 but thread counts of up to 1000 are advertised these days.. So what is going on? Does high thread count always mean better quality? Is there an optimum thread count, and if so what is it?

Muzzling the Motor Mouths: Silence Workplace Windbags
Written by: Bill Lampton Ph.D. | Distributed: 2005-12-01 | Word Count: 0 | Page Views: 5474 | Votes: 4 | Rating: 0.50
During my twenty-three years in management, I dealt with blabbermouths frequently, so for the last ten years I have advised clients on how to silence the workplace windbags. Here are my suggestions for muzzling the motor mouths:

Better Than Botox is there a Safer Substitute?
Written by: Kamau Austin | Distributed: 2005-09-08 | Word Count: 0 | Page Views: 5381 | Votes: 3 | Rating: 0.33
Women since time immemorial have always looked for ways to enhance and prolong their beauty. This of course becomes more difficult as they age.

Transform Your Work Area into a Homey Environment
Written by: Ted Roberson | Distributed: 2006-02-24 | Word Count: 0 | Page Views: 5247 | Votes: 4 | Rating: 1.25
Nothing enables one to think and work better than a comfortable working environment. Especially if you have a sedentary job, you've got to have little knick knacks around that will enliven your spirits or which you can look at for inspiration or just to zone out in relaxation.

12 Ways to Promote Your Business And Website for Free
Written by: Ivana Katz | Distributed: 2005-03-29 | Word Count: 0 | Page Views: 5111 | Votes: 3 | Rating: 0.33
You are very excited!! You have finally created your own website!! But the trouble is customers aren*t knocking on your website door. Why? The most probable answer is...

Flowers Are The Perfect Gift For Father's Day
Written by: Wesley Berry, AAF | Distributed: 2008-02-20 | Word Count: 486 | Page Views: 4981 | Votes: 11 | Rating: 2.09
Dads everywhere have Sonora Smart Dodd to thank for getting Father's Day started. In 1909, Sonora sat in a church in Spokane, Washington listening to a sermon expounding on the virtues of motherhood. But, as she sat there, she thought about how special her own father was since it was he who raised her after the death of her mother.

Building your Credit to get a Mortgage
Written by: Kamau Austin | Distributed: 2006-05-11 | Word Count: 840 | Page Views: 4622 | Votes: 11 | Rating: 2.09
You are thinking about purchasing real estate. However, you are not sure if your credit is good enough to get a mortgage. There are things that you can do to build your credit so that it is worthy of any mortgage that may interest you.

7 Tips to Hiring a Good DJ for your Party
Written by: Kamau Austin | Distributed: 2006-05-11 | Word Count: 563 | Page Views: 4591 | Votes: 11 | Rating: 1.36
If you want to have a party that everyone will be talking about for days and years later, hire a good DJ to run your music and light show. Hiring a DJ can actually be fun. Just follow these simple tips, and you are sure to have a fabulous DJ for your party.

Sell Yourself, Not Your Products or Services
Written by: Bill Platt | Distributed: 2004-05-03 | Word Count: 0 | Page Views: 4332 | Votes: 2 | Rating: 0.50
Sell yourself, not your products or services. The point we need to make is that your products and services will change over time as your business adapts to the realities of the marketplace.

Highest Ranked "" Articles

Finding the Adventure in Travel Again
Written by: Helen Bergstein | Distributed: 2006-05-11 | Word Count: 718 | Page Views: 3662 | Votes: 14 | Rating: 2.64
If you want to experience adventure at every level of your next trip, you need to go beyond the usual resorts and places to stay. If you're like most travelers, personal safety remains a priority, especially in today's world. A growing number of savvy travelers have found the perfect balance between adventure and comfort.

Building your Credit to get a Mortgage
Written by: Kamau Austin | Distributed: 2006-05-11 | Word Count: 840 | Page Views: 4622 | Votes: 11 | Rating: 2.09
You are thinking about purchasing real estate. However, you are not sure if your credit is good enough to get a mortgage. There are things that you can do to build your credit so that it is worthy of any mortgage that may interest you.

Flowers Are The Perfect Gift For Father's Day
Written by: Wesley Berry, AAF | Distributed: 2008-02-20 | Word Count: 486 | Page Views: 4981 | Votes: 11 | Rating: 2.09
Dads everywhere have Sonora Smart Dodd to thank for getting Father's Day started. In 1909, Sonora sat in a church in Spokane, Washington listening to a sermon expounding on the virtues of motherhood. But, as she sat there, she thought about how special her own father was since it was he who raised her after the death of her mother.

7 Tips to Hiring a Good DJ for your Party
Written by: Kamau Austin | Distributed: 2006-05-11 | Word Count: 563 | Page Views: 4591 | Votes: 11 | Rating: 1.36
If you want to have a party that everyone will be talking about for days and years later, hire a good DJ to run your music and light show. Hiring a DJ can actually be fun. Just follow these simple tips, and you are sure to have a fabulous DJ for your party.

Ann Arbor, MI Offers A Lot Of Year-Around Family Fun
Written by: Jeb Maxwell | Distributed: 2010-01-20 | Word Count: 595 | Page Views: 3551 | Votes: 8 | Rating: 1.25
Ann Arbor, Michigan is the home of the University of Michigan, a leading institution of higher education. Ann Arbor is a wonderful place to visit. The University is co-mingled with the city and greatly expands the cultural places and events available in the area.

How to Decorate Your Home on EBay
Written by: Pamela Cole Harris | Distributed: 2005-09-14 | Word Count: 0 | Page Views: 1392 | Votes: 5 | Rating: 1.20
If you are on a budget (and who isnít?), a wonderful place for find home decorating accessories is auction sites like eBay. But before you go aíbaying, here is some advice...

The "Proprietary Blend" Nutritional Supplement
Written by: Will Brink | Distributed: 2006-02-10 | Word Count: 0 | Page Views: 2646 | Votes: 5 | Rating: 0.60
In a nut shell, I went onto cover each of these common marketing terms that are used to sell supplements to unwitting consumers and explained each in detail as to what I view as their common misuse within the market place.

Brink's Unified Theory of Nutrition
Written by: Will Brink | Distributed: 2006-02-24 | Word Count: 0 | Page Views: 1620 | Votes: 5 | Rating: 0.60
Regardless of the topic, a unified theory, seeks to explain seemingly incompatible aspects of various theories. In this article I attempt to unify seemingly incompatible or opposing views regarding nutrition, namely, what is probably the longest running debate in the nutritional sciences: calories vs. macro nutrients.

7 Steps to Successful Telemarketing
Written by: Kamau Austin | Distributed: 2006-05-03 | Word Count: 0 | Page Views: 2278 | Votes: 5 | Rating: 0.40
Telemarketing is not as easy as it looks. Telemarketing involves talking on the phone to someone you do not know and trying to convince them to buy a product, use a service, or sign up for a special offer. Many times, telemarketers fail because they are not doing the job properly.

Offer More Payment Options than your Competition
Written by: Bill Platt | Distributed: 2004-05-03 | Word Count: 0 | Page Views: 2644 | Votes: 5 | Rating: 0.40
In order to be successful online, you must provide your customers many quick and easy ways to pay for your goods and services. It is not enough to ask folks to send a money order or check to your house or place of business. You must do more.











Download an eBook today
 
Directory Navigation
Locate By Category:

ALL Categories
Arts & Crafts
Arts & Entertainment
Automotive
Business - Offline
Business - Online
Career
Computers
Education
Family
Finance
Food & Drink
Health & Wellness
Home & Garden
Humor
Internet
Nature & Pets
Real Estate
Religion
Self Improvement
Shopping
Society
Sports & Recreation
Technology
Travel & Leisure
Uncategorized
World Events
Writing & Speaking

Change Number of Results:
50 - 100 - 200 - 500
Article Reprint Rights
Creative Commons License

This work is
licensed under a
Creative Commons
License


You are not required to show the creative commons license notice when you reprint this work.
Article Statistics
Word Count: 0

Total Views: 1877

Article Rating: 0.50 of 5
Votes Cast: 2

More Articles By Author:



Last Distribution Date:
2005-03-08 01:57:33

Internal ID: #2310





All Articles are Copyright © 2001-2020 of the Defined Authors.

All other material and images on this site are:
Copyright © 2001-2020, ThePhantomWriters.com