Simple Bookkeeping System for Start ups

Every business needs a recordkeeping system of their financial transactions. Whatever you choose must be sustainable, occur regularly, and produce verifiable information that you can use to manage business operations as well as meet secondary information requirements for tax and accounts preparation.

Every bookkeeping system contains three key elements: documents, record processing, and storage. Therefore, such a system need not be complicated or expensive when You’ll need a more extensive system when your business grows or you have increased requirements for accountability to third parties such as business partners,

Step 1: Documents

All of your business activity should be recorded in a system in a systematic fashion. The best way to record them is with a simple Microsoft Excel spreadsheet, or in a notebook. Note every expenditure as it happens, then put the receipts in a file. Make notes on the receipts for meals of who else was present and the topics of conversation.

Step 2; Record keeping

It is important to record all documents at least monthly. Accounting systems such as QuickBooks make it fast and easy to record data by category and create financial statements but can be confusing for bookkeeping inovices to set up and operate properly. If you want to use one of these systems from the beginning, ask for direction from your accountant or colleagues familiar with these systems.

Step 3; Storage

Set aside receipts for big-ticket and long-term items, such as real estate, equipment and vehicles, loans, and leases, and store them in separate files. Store your other documents in a filing cabinet or in folders with sides to keep the smaller receipts from falling out. Arrange the folders by month or by topic, based on your preferences or how you most often retrieve the information.

Contact KVS Accountants for all your bookkeeping needs. We have extensive experience in providing bookkeeping services to many small to medium scale businesses in the South West London region. KVS Accountants act as bookkeepers in Fulham, Putney, Chelsea, Barnes, Wandsworth, Kensington, Clapham and Holland Park.

 

Tags: , , , , , , ,