 |
Bookkeeping Basics for a
Successful Home Based Business
It's important for any small business owner to have an idea about bookkeeping basics - both for legal reasons and to keep an eye on finances, cash flow in particular. Even if you use small business bookkeeping software, it's useful to have an understanding of the basic principles and issues. If you're not already up to speed, it's easy to find some suitable
bookkeeping training
on Sage or other accounting software. You will need proper accounting records to form the basis of your annual profit and loss calculations and file your tax returns. If you make a profit you will need to pay tax. If you make a loss you may be able to claim tax back. You'll need to check your national and local tax rules on this. Your accounting records are simply a history of financial transactions in your business. You pay a business expense, you make a sale, you put personal savings into the business, you take money out for personal spending. All these items need to be written down so you have a full and complete record. BOOKKEEPING BASICS - If possible, keep a separate bank account for your business transactions. Then make sure that you make a note of the reason for all money paid in and all money paid out. Also, keep a record of any money transactions that do not go through the bank account, for example credit cards or cash.
- Make sure you keep invoices and paperwork to support the bank account, card and cash transactions.
- Retain your bank account, card and cash records, and all other paperwork so that they do not get lost.
If you keep proper records and give your file of records each year to your accountant, you have a better chance of claiming all business expenses against your taxes. One of the biggest mistakes small businesses make with bookkeeping is failing to write down all cash expenses or to keep invoices. Often their paperwork is a real mess! From a business management viewpoint, if you get the bookkeeping basics right, you have a better chance to control and monitor your cash flow. They say that cash is king for a small business and that is not a bad way to think about it. A key sign of a successful home based business is an improving bank balance.
BACK to TOP Bookkeeping Basics RETURN to Make Extra Money From Home HOME to Successful Home Based Business
|
|
LEARN FROM THE EXPERTS You can read some great advice on real home based businesses in our series of expert interviews
SELLING on eBAY
Skip McGrath, author of many books including The Complete eBay Marketing System talks about how a novice can get started selling on eBay. HOME STAGING
Debra Gould, the 'Staging Diva' provides great tips for a business focused on improving the internal decor of homes making them easier to sell. FREELANCE BOOKKEEPING
Sylvia Jaumann, author of Starting & Running Your Own Bookkeeping Business, advises on starting a bookkeeping business from home. RESUME WRITING
Teena Rose, author of The Ultimate Resource to Building a $100,000 Resume-Writing Business, explains why resume writing is in demand in tough economic times. FREELANCE TUTORING
Dr Alicia Holland-Johnson, author of Becoming a Better Tutor, explains what subject areas are in demand and how to find customers. HOME BASED COURIER
Sam Knowlton, who runs the CourierPros web site with Bob Lavendusky, advises how a freelance courier can compete against national courier companies. SELLING USED BOOKS
Joe Waynick, author of Internet Bookselling Made Easy! How to Earn a Living Selling Used Books Online, advises how to get started by selling books you already own.
Home BIZ Update
You can keep in touch with new articles on this site by subscribing to our blog or our monthly ezine, Home BIZ Update.
SITE SEARCH
|
