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Business Bookkeeping

You don’t need to be an accountant to run a business, but some basic knowledge about money matters and finance goes a long way. Being able to handle your books is essential – this is how you keep track of all the money coming in and out of your business. Business Bookkeeping is also a legal obligation, so whichever way you look at it, you need the know-how.

Bookkeeping is essentially keeping track of all the money coming in and out and within your business. You keep chronologically ordered records in account books of all transactions, including debit and credit transactions, and record the value of assets, liabilities, incomes, expenses and sales. If you are VAT-registered, you also need to keep records of VAT.

First and foremost, keeping records of your business finances is a legal requirement. But from a business-owner’s point of view, it’s also absolutely crucial for staying in control of your budget and financial happenings, and being able to measure and forecast how you’re doing and how much you can spend – or how much more you need to sell.

But when you don’t have a system and some processes in place, unpleasant surprises can pop up, goals can be easily missed and important paperwork forgotten. Getting a better handle on your money can help you to make and keep long-term goals, smooth out the seasonal ups and downs of your cash flow and maybe improve your profits. It can also help you to stay out of trouble with the Internal Revenue Service.

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