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Bookkeeping for small businesses

Accountancy Matters
Bookkeeping for small businesses

You have just inaugurated the small business of your dreams. You have big dreams and all the skills you need to realize your ambitions. But bookkeeping seems to be an unexpected hurdle. With time you realize that your business runs on good bookkeeping skills and must have the smarts and discipline for it.

Fortunately, bookkeeping is a relatively simple recording process and organizing your business’s financial dealings and transactions. With the right bookkeeping tools, you will feel more confident about your business’s future and understand the profit margin you are making from your business. Hiring bookkeeping services in Melbourne may seem like the best way to go about it. We list a few tips that will help your business succeed.

Understand business accounts

In bookkeeping, accounts don’t just mean bank accounts. Accounts are the record of financial transactions of various types, like income or expenses. There are five basic types of accounts in bookkeeping, viz. Income, expense, liabilities, assets, and equity. Begin your bookkeeping journey by setting up each of these accounts.

Set up a ledger

Not long ago, a ledger used to be a book with all the business details. Now ledgers can be digitized and operated with more ease. Your ledger could be multiple spreadsheets, desktop accounting bookkeeping software, or cloud-based bookkeeping software.

Decide on a bookkeeping method

Choose between single entry or double-entry bookkeeping services. The double-entry bookkeeping method is a far more efficient method than the single entry method.

Keep record

After setting up your accounts, it’s crucial to log in to every credit and debit transaction and in the correct account. Otherwise, you will not be able to close your books.

Balancing your books

When you tally your accounts with credits against debits, the accounts should balance. You should be able to balance your accounts every quarter or annually to close your books.


When to get help

Your business may have a hundred things that can only you can take care of. In such cases, it would be nest to outsource help. You could hire an accountant in Prahran when there are more important things that need your attention. Or you could also get help when you file for a tax return in Melbourne.

Accountancy Matters
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