Good bookkeeping is important to the success of your small business. It will help you keep your resources managed, your taxes in order, and your cash flowing. As a small business owner, it’s vital that you know the basics of good bookkeeping, whether you do it yourself or outsource it.
Every transaction your business makes should be recorded. You need to know how much money is coming in, how much is going out, and where it’s all coming from and going to. Your cash expenditures must also be documented. Writing reimbursable checks and keeping petty cash records will both help you document where your cash is going. Inventory as just as important to keep track of as your cash flow, though. Tracking your inventory will help you forecast for the coming year by tracking trends and keeping your inventory holdings down. When it comes to customers, you must have a detailed record of what they owe you and what debts you owe to them. Recording as much data as possible, including numbers, amounts, dates, and more, will help you to keep your finances straight and your customers happy!
Read the full article here: 6 Small Business Finance Basics You Must Understand