Bookkeeping for Your Small Business

Every business large and small needs to account for it’s profit or loss. This is required for financial and management reporting for both internal and external entities. These include reporting responsibilities to various tax, commerce and labor agencies. As a result, bookkeeping for small business is an important consideration.

Even when the economy is trending down and your business may challenged by factors that are out of your control, you need proper financial reporting to drive and support your business decisions.

You must become familiar with the difference between assets, liabilities and equity. Understand the difference between a Balance Sheet, P&L and Cash Flow report. What is an expense, revenue, accounts receivable, accounts payable.

Separate your personal from your business expenses. Track every business expenses.  Save your important business records.

Sales facilitator, general manager and customer service representative are just some of the daily hats you wear as a small-business owner. Now add bookkeeper and accountant to that list!

Unless you’re actually running an accounting or bookkeeping business, keeping the records for your business can seem overwhelming to anyone. From paying your taxes to planning and forecasting for the future success of your business, rides on having accurate numbers.

Essential bookkeeping resources include automated software like QuickBooks and Wave Financial, professional services such as Bench Accounting, and educational platforms like UCLA Extension or Beginner-Bookkeeping.com. These tools facilitate expense tracking, invoice generation, and tax preparation. Key resources also include free, downloadable checklists and guides, such as those found on YouTube.