Diligent and effective bookkeeping can be possible only if you know where to start. Make the numbers and dates work for you. Just by following these basics, you can setup a very interesting bookkeeping system.
Choose an appropriate bookkeeping system.
Choices are between a single-entry and double-entry. The difference between the two is that when it comes to a single-entry bookkeeping system, it is considered as a rudimentary system which is suitable for personal financing. One very good example is checkbook balancing wherein involvements of a single checking account that is being credited or debited.
On the other hand, double-entry bookkeeping is something that is more appropriate for businesses because it can track two accounts at the same time. In other words, it can do efficient multi-tasking. When you sell a product, recording of the transactions as a debit on your inventory and a credit on your account is automatically done by double-entry bookkeeping.
Get appropriate help.
Business owners, especially the ones owning small businesses, have one thing in common they lack the enthusiasm and time to have a detailed ledger. If you want to...