Bookkeeping for Beginners: 6 Basic Concepts to Get You Started : EasyBooks Small Business Bookkeeping App Try For Free!

If you are a bookkeeper and absolutely love numbers and analysis, then that’s a good start to becoming an Partnership Accounting accountant. How long it takes for you to learn the tasks of bookkeeping is completely up to how dedicated and eager you are to obtain new skills and abilities. They have something for you, no matter what stage of your virtual assistant bookkeeping business you are in. Bookkeeper Launch is a mega bookkeeping course from bookkeepers.com. Like with everything new you learn, it might take a while to get the hang of the systems you need to use.

What you need to set up small business bookkeeping

• To get started with bookkeeping, the first step is to familiarize yourself with bookkeeping terms and phrases.
• The best results happen when a business implements a bookkeeping strategy over a period of time or builds a long-term working relationship with a qualified bookkeeper.
• If you find someone who is a good fit for your business needs, it doesn’t matter if they are in California while you work from New York.
• Bookkeeping is the practice of organizing, classifying and maintaining a business’s financial records.
• Bookkeeping can dramatically improve the bottom line of a company.

Recording your transaction allows you to file your taxes every fiscal year and apply for all applicable deductions, saving your company money you could have otherwise lost. Additionally, it allows you to maintain compliance with the IRS, protecting you from penalties and possible charges. For a bookkeeper to keep accurate records of the transactions within a company, they must be familiar with its charts of accounts.

How To Do Bookkeeping for Small Business

You work hard for your money so the last thing you want is giving a big chunk to the taxman and then another hefty slice is being a bookkeeper hard to a bookkeeper for tasks you can do by yourself. While single-entry bookkeeping is simpler, double-entry is more thorough and less likely to produce errors. Whether you do the bookkeeping yourself or hire someone to do it, certain elements are fundamental to properly maintaining the books. Some of these elements are done more regularly than others to ensure that the books are always up to date. Other elements are completed at certain time periods as necessary to complete a business task. The chart of accounts may change over time as the business grows and changes.

Stick to a Time Limit

Once you receive your monthly bank statement, you need to reconcile the transactions on the statement with those posted in your ledger or accounting software. It’s critical that every debit and credit transaction is recorded correctly and in the right account or your account balances won’t match and you won’t be able to close your books. There is typically at least one account for every item on your company’s balance sheet and income statement.

Types of Bookkeeping

The best results happen when a business implements a bookkeeping strategy over a period of time or builds a long-term working relationship with a qualified bookkeeper. Waiting until crunch time to prepare documents and fix bookkeeping errors can be too late if the records are kept with many mistakes. Efficient bookkeeping involves foresight, meaning that a business should always plan for upcoming financial events, including tax time. Good preparation and documentation are critical for paying taxes (including payroll taxes) on time. Below adjusting entries are some of the most common statements a bookkeeper uses to monitor activities.

Equity

• There’s good news for business owners who want to simplify doing their books.
• You also have to decide, as a new business owner, if you are going to use single-entry or double-entry bookkeeping.
• To make it even easier, bookkeepers often group transactions into categories.
• From there, the total pay is determined with the applicable taxes and withholdings.

Learners are advised to conduct additional research to ensure that courses and other credentials pursued meet their personal, professional, and financial goals. While it’s not always necessary to have a degree, some companies will look for candidates with coursework in accounting. According to the US Bureau of Labor Statistics (BLS), the median salary for bookkeepers in the US is $45,860 per year as of 2021 1.