Delegation is something that is needed when you are running your own business. You have to be honest with yourself and focus on what you do best. I’m the creative type and I actually don’t like math. Ok, I HATE IT.

Over the years, I noticed that whenever I have to deal with accounting, I started to procrastinate since it wasn’t a favorite activity of mine. So, the smart thing for me to do was get a bookkeeper that can work with me each month and crack the whip on me to make sure I’m staying organized with my finances. I encourage you to get a book keeper since they are pretty affordable (some as low at $100 a month) and it’s better for you in the long run to keep track of your spending, especially if you rather be out managing, creating, speaking, and well, playing :)

Check out this article I found that breaks it down for ya!

Simone


Book Keeping Basics

Despite the importance of bookkeeping, small businesses often neglect it because of the time and effort it takes to set up and tend to a bookkeeping system. Most business owners would rather be out generating sales than sitting in the office making journal entries or entering debits and credits in their general ledgers.

But bookkeeping is one thing you can’t afford to ignore. To understand why, it helps to comprehend what bookkeeping is and how it affects your business.

Bookkeeping is the recording of a business’s financial transactions. It’s the first step of the accounting process, which also includes classifying, reporting and analyzing financial data.

Bookkeepers are responsible for organizing and tracking receipts, canceled checks and other records generated by financial transactions. Bookkeepers chronologically record all transactions — cash disbursements, cash receipts, sales and purchases, and others — in a journal and post the journal entries to a general ledger of accounts, which accountants use to prepare monthly financial statements.

Although bookkeeping doesn’t contribute directly to your profits, there are several good reasons to maintain balanced books:

* Lenders and investors want to see accurate and complete books for a business before granting loans or raising capital for it. If you rely on outside financing, this is the most important reason to invest time and money in bookkeeping.

* Bookkeeping generates the information you need to manage your company. For example, up-to-date general ledger information shows which customers are past due on their accounts or have outstanding balances on lines of credit. Financial reports help you assess whether or not gross profits and expenses are in line with your budget and projected net profits. In other words, these reports help you anticipate and avoid cash-flow problems.

* In order to know how much you owe the IRS, you need an accurate picture of your company’s income. In addition, keeping receipts and canceled checks will back up whatever deductions and tax credits your company takes. Without good record keeping, you leave yourself exposed to fines and penalties if you get audited.


Bookkeeping Options

Many businesses hire an accountant or a bookkeeper to maintain their books. But if you can’t afford to or don’t want to hire an accountant, you can learn the basics by taking a bookkeeping class at a community college or small business center in your area. READ ON HERE….