With business bookkeeping and basic tax tips for new and old entrepenuers

Thursday, October 30, 2008

So when should I start worrying about keeping "books"?

Business School 101 - Lesson 1:

From Alamo Bookkeeping Associates

Picture by freefoto.com

Alright, so I am asked the question, when should I start worrying about my "books". A lot of people don't even know what "books" are, they just hear the term from other people and in some movies, usually movies having to do with the mafia or other criminals.

Books, are accounting information. It basically measures how much money you make and how much you spend on your business. When should you start a set of books? Well, it kind of depends on how much activity you have. My advice is as soon as you hit over 20 transactions, that is, deposits to your bank or checks/debits, cash transactions concerning your business, you should probably start some bookkeeping, so you can keep track of what is going on, and don't have to rely on your memory as the months go by.

Next, what exactly is a set of books?

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