When it shows correspondence to start a new business, you’ll be experienced with an abundance of tasks, from marketing, creating website, bookkeeping, accounting. The Accounting task might be the most dreadful than other tasks. But there is no need to worry because Tachotax team is here to guide you to make small business accounting easy for you to understand, irrespective of your prior knowledge.
Let’s learn first, what is Accounting and Bookkeeping?
Accounting is the most important task for running any business successfully and it is a legal responsibility for any business owner. Accounting is the process of recording of financial transaction as well as storing, sorting, retrieving, measuring, and presenting the results in analyses for understanding ins and outs for your business. You should know where you are spending your money, who is controlling it all and some other things.
Bookkeeping involves recording and classifying all the financial transactions in your business. It’s keeping track of what your business spends and what your business receives.
These tasks used to be managed using books and ledgers, hence the name ‘bookkeeping’. Originally the transactions would be recorded in daybooks, cashbooks, sales book, purchase books, maintaining of stock or journals.
Need of Bookkeeping & Accounting:
For Running a successful business, we need to maintained proper books of accounts.
- Such as Sales books which represent our cash sales as well as credit sales.
- Purchase books which represent our cash purchase as well as credit purchase.
- Journal register to maintain expenses and other income.
- You can complete accurate tax returns filling.
If we can’t maintain in proper manner, then we didn’t identify our company’s growth weather is in profit or not.
Other Small Business Bookkeeper Duties
If you’re acting as bookkeeper for a small business, you may also be responsible for:
- Accounts Receivable (issuing invoices and making sure they’re paid)
- Accounts payable (paying bills on time)
- Payroll (paying employees)
Professional bookkeepers also provide other services, like helping with financial reports (profit-and-loss, balance sheet, cash flow report), and measuring business performance.