Small Business Bookkeeping Tips: How To Set up and Manage Your Own Books

There are two distinct differences between small business bookkeeping and invoice writing that should be remembered and appreciated for business success.

First, while keeping accurate records, a small business owner must make sure to send receipts and payments promptly to have cash flow no later than the projected date indicated on the due date of each payment. Second, a business owner must not neglect to keep all required vouchers up-to-date and accurate for processing.

Second, while it is vital to have various invoices, they must be sent to the right persons, who will, in turn, pay the bills on time. Thus, small business bookkeeping is about getting paid, not about sending the bills.

Small Business Bookkeeping is about documents, tracking expenses, transaction costs, and revenues. It is about keeping accurate files and paying attention to every detail. Unfortunately, this approach means that small businesses must have independent business accounting software or invoice maker software to track their invoices and payments. That is because there is a fundamental difference between accounting and bookkeeping. While each is about keeping books, they are vastly diverse beasts.

One example of a subtle discrepancy is that accounting is concerned with recording transactions, whereas small business bookkeeping is concerned with errors or omissions. Also, while accounting is concerned with the flow of funds and dollars, small business bookkeeping is more concerned with the specifics. Finally, although accounting may appear more involved, it only includes taking actions to get the information recorded.

As an assistance, the notorious company known as Kippin created an infographic below. They share all the easy but practical and helpful tips on setting up and managing one’s business—preferably those who are only beginning.

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