Ellie's Simple Manual Bookkeeping Info
SIMPLE MANUAL BOOKKEEPING REPORT
This report is for the beginner starting a business, who does not want to buy a bookkeeping software package; until he/she is ready for it. It will save you money. One of the most important, least understood and appreciated aspects of any business is, its bookkeeping or accounting system. Because very few people know much about the reasons why, other than for tax purposes, they must keep records.
Most people are frightened by the thought of the work involved in setting up such a system and the drudgery of its daily maintenance. There's really nothing complicated to bookkeeping, it is as simple as keeping a daily diary and/or maintaining your personal checkbook. The bottom line; it is simply a matter of recording your income, your deposits and keeping a record of the money you spend(expenses).
So, the first thing you need to do is open a business account for your business income or other endeavors. Generally, this is a simple matter of asking the accounts officer at a local bank for a business account. The officer will help you open this account and will give you, your transaction checks with your company's and your name on them.
Also you must register with the county/city clerk to get a number for allowing you to sell your products. Call the clerk to give you instructions how to go about registering your company.
Now you must buy supplies. Drop by a local stationery store and pick up a loose leaf notebook and paper for your printer. Also pick up a supply of index tabs, to separate the months for the accountability sections for each item you sell. Assuming that you want to make it as simple as possible, while at the same time keeping it, as efficient as is necessary.
Here's what you do and how you do it.
On the first page in you notebook, write on the top line and in the middle of the page:
Monday, January 1st, 200 or whatever day you officially start this accounting system for your business. Then, as your orders come in, if by mail, as you open you mail jot down, starting from the left side of the page, the amount($) you received, for what item, from whom and their address.
The page might look something like this:
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Monday- January 1st, 200.,
$3- Tax Savings Report- Jim S,
(The address).
6- Tax Savings and Appointment Reports- Steve Nlsn, "".
3- 5 Letters P/Day Report- Gloria Wtsn, "".
9- Easy Money- Bob Elltt, "".
Total Income less Expenses(amount). Net Cash =$.....
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That's all there is to it; list all that is to be recorded; what you received and what you spent.
The next entry, immediately under the first day's entry, might look like this:
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Tuesday- January 2nd, 200 ,
Activities
$60- Deposit
11- Check to Printer
11- Consulting Manual-H.P. Brnm, (his address)
Total Income Less Expenses(amount) plus Deposit. Net Cash =$.....
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Continue carrying on with this recording of the money you received, spend each day with similar entries for each day of the week.
Monday through Saturday/Sunday for each week.
It is simple, uncomplicated and a positive record of your business activity.
At the end of each month transfer this daily diary information to one of the low cost bookkeeping registers that your tax consultant or accountant can work from.
These people won't work from your daily diary and will not ransfer the information you record in it, to a formal bookkeeping register without charging you a small fortune. It's not that big of a job and if you do it after the close of business on the last day of each month, it won't take you but just a few minutes.
Then of course, when you are ready to file your taxes, you simply give your bookkeeping register to whomever is going to do your taxes and your are home free.
The bookkeeping register you'll need can be any simple columnar notebook such as:
(Economic Register, Form RL-17), available in a number of different styles and sizes. All you really need is some sort of notebook with a number of columns marked off;
a title written at the top of each column and a record of the money received for each day relative to the product or service each column represents.
Then, at the end of each month, you can simply add the totals from each column and you'll instantly know how much money you took in from each of your products/services you are offering. Beyond the date column, it will be your record of expenses or money spent.
Again, you should title each of the columns, you will be entering figures into, and then record your expenditures for items falling into those categories.
Then at the end of each month, it's a simple matter of adding the totals from each column and know exactly where you stand relative to profit/loss how much you took in comparison to how much you spent.
Bookkeeping and/or accounting is very simple and should not scare you. Just keep it simple and up-to-date. When your have learned enough, you can try to tackle a simple/inexpansive software package.
The names here are examples for you to get an idea.
*You can legally choose your starting and ending of your business year. You have two choices, but you must file a request(to IRS) to change your business accounting year, at the Internal Revenue Service.
Your choices are:
a.January 1,200 , to December 31, 200 ,(calendar year)
b.June 1, 200 , to May 31, 200 ,(fiscal year)
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Copyright © 1996/2009, Ellie Kondy
