The growth of small businesses is increasing day by day. The great desire to start a business is certainly very good for the progress of the economy in the aggregate. The fatal mistake that is often made by a new entrepreneur is neglecting financial accounting. Most of them may only focus on the turnover of goods and marketing but do not pay attention to the continuous flow of venture capital. Through good and systematic bookkeeping even though it is simple, you can find out the flow of funds in and out. With that, profit can be easily known. Besides, by knowing in detail the cash-out, you might be able to maximize profits by reducing the cost burden that has been your biggest expense so far. Hiring Irena’s Bookkeeping and use their service is the easiest way to do it.
Now, because business bookkeeping is very important, here is a summary of tips for creating and managing business bookkeeping. Plan the flow of cash is important to do and can be the first step as a reminder in financial matters in your business. Prepare cash flow from the beginning of your first start of the business to date. Cash flow can be made in detail, for example, made per week to per year depending on the needs of your own business. Accurate cash flows must be understood because they relate to the amount and date of cash disbursements. This is not only to find out how much money will be spent, but what it is for. For example, the money is spent on rent, salaries and wages, sales and other taxes withheld or debt, advertising, and so on.
When you first start a business, it is obligatory to make a notebook about business expenses, starting from the type of transaction and the nominal of the expenditure. You can also provide special notes on each transaction, for example, the name of the seller’s shop or the discount is given. In this cash disbursement notebook, you will record all types of purchases of materials or purchases in your business starting from salaries, purchasing materials, and others. By knowing your cash outflow, you will unconsciously manage your business finances.