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

Friday, March 26, 2010

What is a Good Pattern for Entering Items?

Most people will develop a pattern to enter items into their bookkeeping systems. Developing a pattern and having a checklist helps to ensure you did not forget something on your books. The pattern that I generally use is in this order.
  1. Record Deposits
  2. Record Bank Transfers between accounts
  3. Record recurring debits on the bank account for the month
  4. Record purchases of inventory
  5. Record credit card purchases
  6. Record checks
  7. Record debits per bank statement
  8. Record Cash purchases
I will discuss some of the nuances on some of these items further.
Next, what should I know before recording bank deposits?

Wednesday, March 10, 2010

What is a Journal?

A Journal in bookkeeping terms, is simply a listing of transactions you have entered in the order you put them in. Most of the time the order is by date, because most bookkeeping is done chronologically. This report will basically list the date of the transaction (that you put on it), the accounts that were hit as a debit and a credit, and the amount. A journal is good to look at more in terms of looking at it comparatively to see if you missed any items. Most of the time when you do bookkeeping you are going to develop a pattern for posting items. Just make sure that each month has this same pattern going.

Next, what is a good pattern to use for entering items?

Provided by Alamo Bookkeeping Associates LLC

Tuesday, March 2, 2010

What is an Income Statement?

The most important report that needs to be run, the Income Statement, basically tells you and anyone else who looks at it how much money you brought in and how much you spent on your business. The difference is either a profit or a loss. Hopefully you will have more months when you have a profit than the other way around. Banks will look at this document to try to determine whether or not you are a business that will stay in business for the long haul. Anytime you need to prove income for your business you may be asked to present this statement.

Next, what is a journal?

Provided by Alamo Bookkeeping Associates LLC