There exist two basic aspects of basic bookkeeping for new business start ups. Firstly, recordings should be made of both financial incomings and outgoings. This ensures the facility of keeping track of all profit and loss that may occur within a set period. Secondly any outstanding bills or any other monies due should be recorded alongside any assets such as property or stock. This again will ensure the facility of ascertaining the exact financial standing of the business.
Again, in recording the above information there are two basic types of method that can be used. These are basically either single entry book-keeping or double-entry book-keeping. The difference between these two methods should be fairly self-evident through their respective titles. However, to spell it out double-entry book-keeping involves literally repeating every entry recording so there are two identical entries, while, of course in single-entry book-keeping the entry is made only once.
The size and scale of the business will be a factor in deciding which of the above systems are used. Basically very small businesses often opt for the single-entry system, although most actually opt for the double entry system due to its greater ability to make locating mistakes so much easier.
To go into every detail involved in keeping the books is out of the scope of this article, so below follow some of the most essential points. To begin, each and every entry will be recorded in a so-called 'ledger'. More specifically, each transaction will be recorded here in both simple cash accounts and accounts that note the finer details of the transaction.
Bookkeeping also contains a statement that gives details of all the assets and liabilities that the business may hold. This statement is referred to as a balance sheet. In its basic form the balance sheet should be compiled with assets recorded on the right hand side while all liabilities should occupy the left hand side.
These are just some brief points regarding basic bookkeeping for new business start ups and anyone thinking of doing their own accounts should either continually consult a qualified professional or consider embarking on one of the number of training courses that exist. A quick online search will reveal many choices in this respect.
Again, in recording the above information there are two basic types of method that can be used. These are basically either single entry book-keeping or double-entry book-keeping. The difference between these two methods should be fairly self-evident through their respective titles. However, to spell it out double-entry book-keeping involves literally repeating every entry recording so there are two identical entries, while, of course in single-entry book-keeping the entry is made only once.
The size and scale of the business will be a factor in deciding which of the above systems are used. Basically very small businesses often opt for the single-entry system, although most actually opt for the double entry system due to its greater ability to make locating mistakes so much easier.
To go into every detail involved in keeping the books is out of the scope of this article, so below follow some of the most essential points. To begin, each and every entry will be recorded in a so-called 'ledger'. More specifically, each transaction will be recorded here in both simple cash accounts and accounts that note the finer details of the transaction.
Bookkeeping also contains a statement that gives details of all the assets and liabilities that the business may hold. This statement is referred to as a balance sheet. In its basic form the balance sheet should be compiled with assets recorded on the right hand side while all liabilities should occupy the left hand side.
These are just some brief points regarding basic bookkeeping for new business start ups and anyone thinking of doing their own accounts should either continually consult a qualified professional or consider embarking on one of the number of training courses that exist. A quick online search will reveal many choices in this respect.
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