Congratulations on opening your small business! Running your own business can be an incredibly rewarding and challenging task. One of the most daunting aspects of operating a business can be bookkeeping; it is also the most risky circumstance for mistakes. Before deciding to operate your own business, you should have a better understanding of money management. Included here are a few things you should know about bookkeeping as you embark in your new role.
The most simple aspect of bookkeeping lies with cash. It is easiest to monitor business transactions with cash, however it is critical that you keep two journals for tracking the activity. It is easiest if you make these two files for Cash Disbursements and Cash Receipts. Deposits and withdrawals must be carefully tracked with cash as well. [Read more…]