What A Bookkeeping
Keeping clear business records is important. It helps you understand how much money is owed to you, how much you owe and will prevent you from making costly – not to mention illegal – errors. It can also help you monitor your business and identify sources of income.
Below is a list of records that you should keep accurately and orderly:
- Payroll and employment taxes
- Sales and purchases
- Bank statements
- Profit and loss statements
- Cash flow analysis
Accounts receivable and accounts payable are also two important records to keep. Accounts receivable is a claim from an uncollected amount, usually from a sale on credit. For instance, a sale has been made but the money hasn't been collected – only credited. Accounts payable is an amount owed to a vendor or credit for completed goods or services. For instance, a small business might have short-term payments to banks.